- (1.) Heard Sri Ashish Bansal learned counsel for the appellant assessee and Sri Subham Agarwal learned counsel for the department. This is assessee's appeal for the assessment year 1995-96 against the order passed by the tribunal dated 22.11.2007.
(2.) The following questions of law sought to be answered are as under : "1. Whether there existed any material which could justify the findings of the tribunal to the effect that the expenditure aggregating Rs.60,09,212/- incurred under various heads was of capital in nature and was not admissible as business expenditure ? 2. Whether the tribunal was legally correct in reversing the order of the first appellate authority in the matter of admissibility of sums aggregating Rs.60,09,212/- as revenue expenditure, without there being any material contrary to the findings recorded by the first appellate authority brought on record by the revenue ? 3. Whether the view taken by the tribunal is not vitiated as being inconsistent with the material and information on record and law applicable thereto ? 4. Whether the order of the tribunal disallowing the assessee's claim for deduction of expenditure amounting to Rs.60,09,212/- is not vitiated in law by the reason of non-consideration of relevant material and information as was available on record ? 5. Whether on a true and correct interpretation of the provisions of law, governing the computation of income under the head income from business and profession, the tribunal was legally correct in disallowing the assessee's claim for deduction of expenditure aggregating Rs.60,09,212/- as had been incurred by the assessee under various heads ? 6. Whether the view taken by the ITAT in the matter of admissibility of expenditure aggregating Rs.60,09,212/- is not vitiated in law as the same is based purely on imagination, surmises and conjectures, without there being any foundational support for the same ?"
(3.) Learned counsel for the assessee has sought to argue that regardless of what the amount may have been the amount spent by the assessee on the repairs, replacement and renovation of his hotel rooms in one unit and construction and reconstruction in the other units at Agra and Lucknow respectively, the same could not be termed as capital expenditure rather they were amounts which were spent in the day today running of the business of the assessee and only qualify as revenue expenses.;