Law:

Section:

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Tribunal found that there was no fresh construction of hotel building and expenditure incurred by assessee was to restore it to its earlier state and to repair damages caused by fire - Whether in view of aforesaid finding of fact expenditure incurred on reconstruction of hotel building was to be allowed as revenue expenditure - Held, yes FACTS The assessee claimed certain expenditure incurred on reconstruction of hotel building as revenue expenditure. The claim was disallowed by the Assessing Officer but allowed by the commissioner (Appeals) as well as the Tribunal. On reference : HELD The order of the Commissioner (appeals) clearly recorded the finding that there was no fresh construction and that what was indeed done was to restore the building to its earlier position and to repair the damage caused by the fire to the hotel building. If this was the finding of fact, which had been accepted by the Tribunal, the expenditure could not be held to be capital expenditure. The reference application was dismissed. Note: Decision was in favour of assessee.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492