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2007] 293 ITR 170 [2007] 161 TAXMAN 135 (DELHI) HIGH COURT OF DELHI Bigjo's India Ltd.* v. Commissioner of Income-tax, New Delhi MADAN B. LOKUR AND V.B. GUPTA, JJ. IT APPEAL NO. 1292 OF 2006 MARCH 28, 2007 Section 30 of the Income-tax Act, 1961 - Rent, rates, taxes, repairs and insurance for buildings - Assessment year 1998-99 - Whether where assessee-company incurred huge expenditure towards carrying out structural changes in its business premises by erecting new wooden counters and acquiring new lift, shaft, etc., it could be said that expenditure incurred by assessee had resulted in enduring benefit for a long period and, therefore, said expenditure was capital in nature and not in nature of current repairs as claimed by assessee - Held, yes FACTS The assessee-company had constructed various new counters and had undertaken other building work. The huge expenditure incurred, therefore, was claimed as deduction on account of repair and maintenance expenditure. The Assessing Officer, while rejecting said claim, held that the expenditure incurred by the assessee had resulted in enduring benefit for a long period and, accordingly, he assessed a sum of Rs. 10 lakhs on estimate as representing capital expenditure incurred by the assessee. The Commissioner (Appeals), though agreed with the findings of the Assessing Officer, found that the estimate made by him was on higher side and he estimated said expenditure to the extent of Rs. 7 lakhs, which order had been upheld by the Tribunal. On appeal : HELD It was an admitted fact that structural changes had been made by the assessee in the premises. During the course of the assessment proceedings, the assessee himself had admitted that during the year new counters were errected and the fact had been established from the record since huge expenditure on purchase of timber and plywood had been incurred by the assessee. Further, the assessee had altogether build a new shaft and shifted old shaft to a new site and had spent huge amount on the construction of it. So, there was no doubt that the expenditures incurred by the assessee were for fixed capital assets and, therefore, the expenditure was in the nature of capital and…

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