This is what department did..

397 views 2 replies

Fact of case-

  • 8 story building was 7 yrs old
  • cost of building was Rs 7.2 cr
  • Fassade was changed this year by investing Rs 28 Lacks
  • nothing else was changed

is it capital or revenue expenditure ???

Department treated it capital exp.

But this renovation does not change the functionality neither add any new benifit to the building? is it justified

Replies (2)

It is a capital expenditure only since it increases the value of the building and it will lead to higher sales consideration in the FUTURE if sold.

 

for more queries : https://knowyourtaxation.blogspot.in/

Dear Shashank, increase in resale value cannot be attributed to change in front elevation only, as per my understanding SC ruling was that if the utility of the asset is enhanced then it will be capital expense? 

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