Case Law Details
Kirtilal Kalidas Jewellers Private Limited Vs ACIT (ITAT Chennai)
ITAT Chennai held that expenditure towards furniture maintenance which is incurred to make the lease premises workable and functional is revenue in nature.
Facts-
During the course of the assessment proceedings, AO noticed that the Assessee has debited huge expenditure under the head “Furniture Maintenance” and therefore called upon the Assessee to file necessary details. In response, the Assessee had filed details of expenditure under the head “Furniture Maintenance” which includes plywood purchases, hardware items and payment for carpentry works amounting to Rs.1,12,16,205/-. The Assessee claimed that these are temporary repairs for renovation of branch office of a leased premises and thus, the same cannot be capitalized, as the Assessee is not creating asset which gives enduring benefit.
AO, however rejected the arguments of the Assessee and made an addition towards the said expenditure after allowing depreciation at the rate of 5%.
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