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2013 (9) TMI 74 - ITAT COCHINExpenditure incurred on renovation of showrooms on rented premises - Revenue or capital expenditure - Held that:- ownership of assets would continue to remain with the assessee only. Hence, the view of the learned Commissioner of Income-tax (Appeals) is contrary to the facts - the assessee has installed equipments, which can be removed and also can be taken back and reused in some other place - assessee would continue to be the owner of these equipments, though they were installed in the premises of the dealer - Therefore equipments have to be considered as the capital assets of the assessee-company - Decided in favour of Revenue. Club Entrance fees and expenditure on services availed from the club - Expenditure incurred towards entrance fee/subscription can be termed as business expenditure. With regard to the cost of services, it is the responsibility of the assessee to show the commercial expediency in incurring the same. In the absence of the same, the Assessing Officer was justified in disallowing the sum of ₹ 1,48,212. Disallowance u/s 43B - Provision for payment of bonus - Assessing Officer had made similar disallowance in respect of claim of bonus payment in the assessment year 2002-03, i.e., provision created for the year ending March 31, 2001 was paid during the year relevant to the assessment year 2002-03 and was claimed in that year - Held that:- Simply because the assessee has not claimed a particular deduction, it cannot be said to be a colourable device - The deduction relates to payment of bonus which has actually been paid in the present year and deduction has been claimed as per section 43B. Such deduction has been claimed on consistent basis in the year of payment and, therefore, no adverse inference should have been taken - Decided against Revenue. Bebts and advances written off - Held that:- t the advances of ₹ 28,67,407 given for acquisition of capital assets is liable to be disallowed as "capital loss" and the advances of ₹ 2,32,93,575 given for acquisition of revenue items is allowable under section 37 of the Act as current expenses.
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