REGAL THEATRE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal (Delhi Bench) has referred the following question of law for our decision under section 66(1) of the Indian Income-tax Act, 1922 :

(2.) THE assessee is the lessee of the cinema building known as "Regal THEatre" in Connaught Circus, New Delhi. THE lease deed was executed on the 14th July, 1949, and was duly registered under the Indian Registration Act. Only three clauses of the lease-deed have some relevancy and, therefore, they are set out below :

(3.) THE short question that we are called upon to determine in this reference is whether the aforesaid expenditure is a "capital expenditure revenue expenditure". THE contention of the assessee is that "revenue expenditure", while that of the department is that it is expenditure".