In the context of repairs expenses incurred by a hotel the Cochin SMC bench in a detailed order in 18 ITR (Trib)-OL 651held that the test of an improvement or an advantage is not strictly germane or conclusive.Even going beyond it held that where the cost of repairs is found not allowable either under section 30(a)(i) or under section 30(a)(ii) and section 31(i), the same may still be considered allowable under section 37 following apex court proposition in122 ITR 49.
Simply speaking the bench went by the underlying necessity of such expenditure incurred than anything else. And that was to gain renewal of the three star classification.