| 10/2/2012 |
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| Board of Special Commissioners - Cases |
| Case No. 16/58 |
Decided: 30 September, 1958 |
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Expenses in respect of extraordinary repairs to premises were deemed by the Board to constitute improvements to premises and, therefore, not deductible - article 11(c), now 26(c), Income Tax Act
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The point at issue was whether expenses incurred in extraordinary repairs to or reconstruction of premises were capital in nature, as decided by the Commissioner or revenue ones, as maintained by appellant.
The Board held, in the first instance, that Legal Notice 684 of 1950 established the maximum amount deductible in respect of such expenses in such cases. The Commissioner could not possibly allow the deduction of the value of the invoices presented by appellant where these exceeded the limits set by the Deduction (Maintenance and Repair of Premises) Rules.
It was evident from the description of the works carried out that these were meant to either conserve or ameliorate the capital. They did not constitute ordinary maintenance of buildings and were, therefore, not deductible.
An appeal was entered before the Court from this decision (see case no. 23).
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