Building constructed on lease hold land

Building constructed on Lease hold hand, the depriciation is claimed by lesse.

Please kindly consider the below caselaw and explain me which accounting treatment will be suitable.

Brief : : Held by the Hon`ble Court that, explanation 1 of section 32(1) does not apply in a case of construction on the land which is taken on lease by the assessee, assessee did not acquire a capital asset but had put up a construction of the building only for business advantage. Therefore entire construction cost was admissible as revenue expenditure.

Citation : C.I.T. Vs. TVS Lean Logistics Ltd.

Judgment :

Capital Or Revenue Expenditure C.I.T. Vs. TVS Lean Logistics Ltd. 07/27/2007 [2007]293 ITR 432 (Mad) Case Fact: Whether, construction of building on leasehold is capital expenditure? Decision: Held by the Hon`ble Court that, explanation 1 of section 32(1) does not apply in a case of construction on the land which is taken on lease by the assessee, assessee did not acquire a capital asset but had put up a construction of the building only for business advantage. Therefore entire construction cost was admissible as revenue expenditure. 

The Case is absolutely correct.

Explanation I to Section 32 (1) states: If the building is taken on lease and expenditure is incurred on renovation of the same, Explanation 1 will apply and such expenditure can be capitalised for claiming depreciation.

On the other hand, if the building is constructed on land taken on lease, no capital asset is acquired because it will ultimately revert to the lessor. The lessee is not the owner of the building, though he incurred expenditure on construction of the same.

But I have read a judgement of the court in which such expenditure is allowed as depriciation, may be the facts of were different form current case of  TVS Lean Logistics.

But in this case TVS Lean Logistics the amount will be allowed as Revenue as Explanation 1 to section 32 (1) not apply.

Thank u sir