IT : Expenditure incurred by assessee on construction of storage sheds on leasehold land is revenue in nature
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[2015] 53 taxmann.com 148 (Chennai - Trib.)
IN THE ITAT CHENNAI BENCH 'A'
Jayakrishna Flour Mills (P.) Ltd.
v.
Assistant Commissioner of Income-tax, Co. Circle, Salem*
DR. O.K. NARAYANAN, VICE-PRESIDENT
AND VIKAS AWASTHY, JUDICIAL MEMBER
IT APPEAL NO. 700 (MDS.) OF 2013
[ASSESSMENT YEAR 2009-10]
OCTOBER 27, 2014
Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Construction expenses) - Assessment year 2009-10 - Assessee was running a floor mill - It was allotted four storage depot, i.e., open land, without sheds, on leasehold basis - It contributed for construction of sheds on that space which helped it to secure lower monthly lease rents - Whether expenditure incurred by assessee on construction of sheds would be revenue expenditure - Held, yes [Para 6] [In favour of assessee]
■■■
[2015] 53 taxmann.com 148 (Chennai - Trib.)
IN THE ITAT CHENNAI BENCH 'A'
Jayakrishna Flour Mills (P.) Ltd.
v.
Assistant Commissioner of Income-tax, Co. Circle, Salem*
DR. O.K. NARAYANAN, VICE-PRESIDENT
AND VIKAS AWASTHY, JUDICIAL MEMBER
IT APPEAL NO. 700 (MDS.) OF 2013
[ASSESSMENT YEAR 2009-10]
OCTOBER 27, 2014
Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Construction expenses) - Assessment year 2009-10 - Assessee was running a floor mill - It was allotted four storage depot, i.e., open land, without sheds, on leasehold basis - It contributed for construction of sheds on that space which helped it to secure lower monthly lease rents - Whether expenditure incurred by assessee on construction of sheds would be revenue expenditure - Held, yes [Para 6] [In favour of assessee]
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