Expenditure incurred by Addition to Buildings and Electrical Fittings on Leasehold Premises is Capital Expenditure: Kerala HC [Read Order]

The Kerala High Court division bench upheld the classification of expenditure on leasehold premises as capital, not revenue, based on the Assessing Authority and First Appellate Authority's decisions, affirmed by the Tribunal. The appellant's Senior Counsel argued against this, citing Indus Motors Co.P.vt. Ltd. v. Deputy Commission of Income Tax and claiming the expenditure was revenue-based. \r

However, the Standing Counsel for the Income Tax Department supported the Tribunal's decision, which aligned with the lower authorities' findings. Justices AK Jayasankaran Nambiar and Syam Kumar VM noted the appellant failed to provide evidence supporting their claim of revenue nature expenditure, thus affirming the Tribunal's decision backed by the lower authorities' assessments.