Asian Hotels Ltd. v. CIT (2024) 296 Taxman 69 (Delhi)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Hotel-renovation, refurbishment and repairs-Consultancy payments-Allowable as revenue expenditure.[S.28((i)]

On appeal the court held that expenses incurred by assessee-hotel on renovation, refurbishment and repairs, were in nature of revenue expenditure  and allowable as deduction. Court also held that  the payment made by assessee to an interior architect, for consultancy and supervision of interior décor of existing hotel of assessee under ‘renovation and refurbishment’ is allowable as  revenue expenditure.  (AY. 1993-94)