1. Has the amount of Rs. 49,097 been rightly held by the Tribunal as an expenditure of a capital nature ? That is the question involved. The assessee claims this amount as an expenditure exclusively incurred by him for the purpose of his business. The Tribunal has held it to be of capital nature.

2. The assessee is a registered firm. Its business is that of a distributor of films. It too runs a cinema house. In order to exhibit films, it had taken on lease the cinema house known as "Ashok Cinema". This building was taken along with its equipment, furniture, fittings, fixtures, etc. In the assessment year 1959-60, for which the accounting year ended on 31st August, 1958, an amount of Rs. 49,097 was claimed by the asses-see as having been solely expended for purposes of its business. The case of the assessee before the Income-tax Officer was that "the building was very old and in view of the change in the outlook as well as the standard of living of the public at large and also to attract the foreigners; etc., it became very necessary for the assessee-firm to give the cinema building a modern shape and to improve it with all types of modern amenities". With this end in view t