Interior expenses on rented premises cannot be categorized as capital in nature

Ved Indian Heritage Haat Foundation Vs ITO (ITAT Ahmedabad) Admittedly, the assessee is running its business from the rented premises which was taken for the lock in period of 60 months. Furthermore, in the rent agreement, there was the clause of renewal of the agreement. Accordingly, AO was of the view that the expenditures incurred on the renovation of the business premises will generate benefit to the assessee over a long period of time. Thus, he treated the same as capital in nature on account of enduring benefit expected to arise to the assessee. The view taken by the AO was subsequently ...