Assessee incurred certain expenditure on a leasehold building and claimed same as revenue expenditure.  Assessing Officer disallowed assessee’s claim and held that expenditure was in nature of capital expenditure and invoking Explanation 1 to section 32(1) held that capital expenditure incurred on leasehold building was to be capitalized and depreciation is  allowed. Order of Assessing Officer is affirmed by  Commissioner (Appeals) and Tribunal. On appeal High Court affirmed the order of the Tribunal. (AY. 2009-10)