Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1977-78, the following question of law has been referred to this court : "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenditure of Rs. 35,000 on repairs of the house property at 7A, Tiljala Road, Calcutta, was a capital expenditure not deductible in computing the income from the said property ?"
(2.) Shortly stated, the facts are that the assessee-firm claimed deduction of Rs. 59,888 as expenditure for repairs of the house property at Tiljala Road, and 39, Dr. Sundari Mohan Avenue, Calcutta, for the assessment year 1977-78. The Income-tax Officer disallowed the claim of the assessee on the ground that the amount was spent by the assessee for renovation of the buildings referred to above.
(3.) The assessee appealed to the Commissioner of Income-tax (Appeals).;