CIT v. K.V. Nellaiappan (2022) 285 Taxman 507 (Mad.)(HC)

S. 32 : Depreciation-Building on lease-Expenditure on construction of building-Capital expenditure-Explanation 1 to section 32(1). [S. 30, 37(1)]

Held that where assessee had taken a building on lease and incurred expenditure towards construction of building leading to enduring benefits; expenditure incurred by assessee was capital in nature and same would come within mischief of Explanation 1 to section 32(1). Appeal of revenue is allowed.(AY. 2003-04)