Expenditure on repair and renovation of leased premises is capital expenditure

IMPROMPTU:
Two points calling for attention are: 1. It was a 5 year lease; the duration, from the view point of a business man / commercial sense or outlook, cannot be regarded to be so ‘enduring’ as to lie in a capital field.2.In the erstwhile scheme of provisions of Chapter XXA, which even after the cut-off date (Sept 30, 1986)continue to be of relevance for certain purposes, such as taxation of House Property income and capital gains,less than 12 years lease is not considered to be long enough to be caught as in ‘capital field’. in view of these aspects,-not seen to have been argued or sufficiently brought to focus,hence not gone into in greater details,- perhaps,the assessed, if so advised, may be expected to pursue its claim in further proceedings. On its part, the Revenue will do well to examine the futility of keeping on raising and battling on such frivolous isses, principally having regard to the fact that ultimately , in the long run/over the period,the Revenue may have nothing to gain or lose. Over to Advising professionals for further useful deliberation.