Kulwant Singh Tiwana, J.

1. The assessee is a registered firm at Jagadhri engaged in the manufacture and sale of steel and aluminium utensils. It carries on the business in the premises taken on lease. The clauses of the lease deed dated 1st of September, 1968, which was produced before the Tribunal and accepted by it, relevant for the purpose of this case, are :

"(iii) To keep the machinery in said working condition and to get repairs effected whenever necessary. If, however, any part of machinery costing Rs. 500 or above (for example erection of the engine, flywheel or rolls of the rolling mills, frames of the machinery or other machinery of the presses) is damaged the lessee will be bound to replace the same with a new one.

(iv) To keep the building in good condition and get it white-washed at least once a year. If, however, any part of the building is damaged by any natural cause, the lessor will be responsible to get the same repaired."

2. During the assessment year 1970-71, the lessee carried out repairs in those premises worth Rs. 22,301 and claimed it as deduction from its taxable income, being an expenditure of revenue nature. The ITO holding that it was an expendi