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2010 (6) TMI 475 - ITAT, MUMBAICapital or Revenue Expenditure - Delhi High Court in the case of CIT Vs. Hi Line Pens Pvt. Ltd., (2008 -TMI - 30864 - HIGH COURT DELHI) - Held that - nature of expenses were renovation of rental premises by having false ceiling, fixing tiles, replacing glasses, wooden partitions, replacement of electric wiring, earthing, replacement of GI pipes etc - the expenditure incurred by the assessee in the present case is revenue expenditure and has to be allowed as a deduction Regarding disallowance of bad debt - In the present case, the Assessing Officer has not disputed that the debts have in fact been written off as bad and irrecoverable in the accounts of the assessee for the previous year - Hon'ble Supreme Court in the case of T.R.F.Ltd. Vs. CIT, (2010 -TMI - 76626 - SUPREME COURT) - Accordingly decided in the favour of the assessee Regarding disallowance of reimbursement of expenses to the parent company - Invoice clearly mentions the fact that it is recharge of cost incurred by the parent company - Hon'ble Bombay High Court in the case of CIT Vs. Siemens Aktiongesellschaft, (2008 -TMI - 32211 - BOMBAY HIGH COURT) - Held that reimbursement of expenses cannot be the subject matter of disallowance u/s. 40(a)(i) of the Act - In the result, appeal by the assessee is partly allowed The necessary approval from Reserve Bank of India had been obtained and the amount was utilized for the purpose of clearing the outstanding liabilities that the assessee had and to meet its overhead expenses - In the result, appeals by the Revenue are dismissed while appeal by the assessee is partly allowed
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