COMMISSIONER OF INCOME TAX Vs. DASAPRAKASH

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Madras Bench, has under section 256(1) of the Income-tax Act, 1961, referred the following question of law for the opinion of this court.

(2.) THE Income-tax Officer considered that the expenditure given above could not be said to be on account of current repairs to the building and that the expenditure incurred had brought into existence an asset of enduring nature. He, accordingly, treated this expenditure as of capital nature and disallowed the said sum of Rs. 37,390 in computing the total income of the firm. THE assessee field an appeal to the Appellate Assistant Commissioner who observed that the expenditure was incurred so as to improve the earning scope of the business and that the expenditure was more of initial nature rather than a regular business expenditure. He held that the expenditure in question had resulted in a benefit of enduring nature to the assessee-firm. He, therefore, confirmed the disallowance.