M/S THE HIND SAMACHAR LTD,JALANDHAR vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, JALANDHAR CITY

ITA 90/ASR/2016Status: DisposedITAT Amritsar31 August 2026AY 2011-125 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the repairs were made to maintain the leased premises in a usable condition as per the lease agreement and did not result in the acquisition of a capital asset or enduring benefit, they should be treated as revenue expenditure. The Tribunal relied on Supreme Court and jurisdictional High Court judgments.

What were the facts?

The assessee claimed repair expenses on rented premises as revenue expenditure. The Assessing Officer treated these expenses as capital expenditure, arguing that the assessee was renovating a property belonging to a sister concern. The CIT(A) upheld this disallowance.

What were the issues?

Whether expenses incurred for repairs of leased premises, to comply with lease terms and maintain usability, are revenue or capital in nature.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 30(a)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. S. RIFAUR RAHMAN & SH. UDAYAN DAS GUPTA

For Appellant: CA for Delhi Group and Sh. Sudhir Sehgal, Advocate
Hearing: 21.07.2026Pronounced: 31.08.2026

Per: Udayan Dasgupta, JM:

The appeal is filed by the assessee against the order of the CIT(A), dated 19.11.2015 for A.Y. 2011-12. 2. Grounds of appeal taken in Form 36 are as follows:

“1. That on the facts and in the circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in upholding an order which is bad in law. In any case the assessment of Jalandhar unit and Delhi Unit could not have been made through one common assessment order. 2 A.Y. 2011-12

2.

That the Learned Commissioner of Income tax (Appeals), has erred in sustaining the disallowance of Rs.6,58,144/- from out of Building Repairs of rented premises as Capital expendit

The order continues below.

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