Expense on leased property to produce right ambience to attract customers allowable

ACIT Vs Rm. K.V. Silks (ITAT Chennai) The assessee being resident firm is stated to be engaged as retailer of silk goods. It incurred expenses in the nature of general stores changes, additional gondolas fittings, room alteration, civil and interior work etc. The same were claimed as revenue expenditure. However, Ld. AO held that the same were towards creation of new assets and therefore, the same was disallowed. During appellate proceedings, it was submitted that the expenditure was incurred on a leased property for smooth conduct of the business as the property could not be put to use for bu...