Sec. 37(1) of the Income-tax Act, 1961—Business expenditure - In the instant case, the Revenue does not dispute the fact that the number of rooms in the assessee's hotel remained at 57 and that there was no increase in the number of rooms and only 18 rooms out of 57 rooms were renovated and repaired. Furthermore, the assessee specifically contended that the renovation and repairs neither increases their capacity nor does it empower to revise the basic room tariff because it can be done only after considering further facts such as market condition remaining in Madurai City and with the concurrence of M/s. ITC Ltd., as they only have a franchisee agreement with the assessee. Further, the granite and marble used by them will not last long and there is no guarantee and they may develop cracks and lose their shine and even become obsolete in a couple of years. These facts were never disputed before the AO or before the CIT(A). As rightly contended by the assessee, that the Tribunal did not consider the issue, but was of the opinion that it was neither the case of the assessee nor that of the Revenue that the claim was for current repairs. Accordingly, the tax case appeal is allowed, the impugned order passed by the Tribunal is set aside and the order passed by the CIT(A) stands restored. - PANDIAN HOTELS LTD. V/s DY. CIT - [2020] 273 TAXMAN 256 (MAD)