Tribunal held that if any expenditure is incurred for construction of any structure or extension or improvement of the building taken on lease would be treated as capital expenditure. The nature of expenditure incurred by the assessee in respect of the leased premises and more particularly the premises at Hyderabad and Bangalore are not of the nature of constructing new structure, extension or improvement of building. Therefore, Explanation-1 to section 32(1) would not be applicable to the facts of the instant case. The nature of expenditure incurred by the assessee with reference to facts of each case would decide whether it is capital or revenue in nature. In the facts of the instant case, after examining the details of expenditure incurred by the assessee, it is viewed that it is of revenue nature, hence, has to be allowed. (AY. 2005-06, 2009-10)