Law: Income Tax Act, 1922

Section: 10,10(2)(ii),(v),(vi)

[Income Tax Act, 1922 (XI of 1922)]..........Section 10(2)(ii), (v), (vi) Current repairs-Capital expenditure-Deferred revenue expenditure-Assessee obtaining cinema house on lease-In terms of lease-agreement assessee to instal talkie machine, projectors, furniture and fixtures etc. and to bear repair expenses-Building, machinery, furniture and fixtures, electric fittings, etc. destroyed by fire Expenditure towards furniture and fixtures, whether capital expenditure and assessee entitled to depreciation thereon. Held yes-Expenditure towards building repairs, replacement of parts of cinema projectors, white wash, colour wash, etc.-Whether current repairs and admissible as straight deduction-Held yes-Expenditure towards electric fittings, whether deferred revenue expenditure and liable to be written aj" equally during the remaining period of tenancy-Held yes. Cases referred to: Commissioner of Income Tax v. Gulistan Cinema Co, Dacca (1968) 17 Taxation 209 ; (1964) 9 Taxation 32 (Trib) ; New Shorrock Spining and Manufacturing Co. Ltd. v. Commissioner of Income Tax (1955) 30 I.T.R. 338; Rhodesia Railways Ltd. v. Income Tax Collector (1933) I.T. R. 227 (P. C.) and Commissioner of Income Tax v. S. B. Ranjit Sing (1955) 28 I. T. R. 14. B. Income Tax Act, 1922 (XI of 1922) Section 10(2) (vi) -Depreciation-Machinery acquired on hire purchase agreement Whether assessee owner of the machinery and entitled to depreciation Held yes (Page 50)B. Case referred to :- Shewram Das Agarwala (P.L.D. 1961 S.C. 321). ORDER [The Order was passed by A. A. ZUBERI, Accountant Member].- The Appellant, a "registered firm", agitates against the learned Appellate Assistant Commissioner, Range, decision dated 23-8-75 on Appeal No. 269/75 relating to assessment year 1974-75. The assessee is engaged in exhibition of Elms. The following issues came up for adjudication. REPAIRS AND MAINTENANCE EXPENSES: The Assessee had obtained T M Cinema on lease from its owner Mr. F at a consolidated rent of RS- 2,500 per month. The lease was to run for a period of 15 years from 1-9-1972. On 17-1-1973 the picture house got fire resulting in damage and distruction to building, furniture and machinery. It…

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