Deduction of depreciation was allowable as expenditure on Leasehold Premises classified as capital expenditure

DCIT Vs Add Lounge Service Pvt. Ltd (ITAT Delhi) Conclusion: Capital expenditure on leasehold premises, such as plumbing, partitions, flooring, and electrical fittings, qualified as improvements to a building used for business purposes. Therefore, depreciation deduction for improvements made to leasehold premises was allowable. Held: Assessee had claimed depreciation on the cost of improvements made to a leased property used for its business operations. AO disallowed the depreciation and treated the expenditure as non-qualifying for depreciation under Section 32 and made an addition of Rs. 53,...