9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 362 - AT - Income TaxNature of expenditure - repair of false ceiling - capital expenditure or revenue expenditure - HELD THAT - As from the invoice as well as work order nothing is clear whether the entire area i.e. 177500 sq. ft. which is claimed by the Assessee for repair, maintenance, modification and overhauling of air conditioning ducts, got damaged completely or partly . It is also not clear whether false ceiling was replaced with the new one or just repaired old one without disturbing the originality and what were the terms and conditions qua quotation/agreement/work order if any executed for doing the repair of false ceiling and what material/manpower used. Hence, view justice would be met by remanding the instant issue to the file of the AO for decision afresh. We clarify that primary onus would be on the Assessee to establish the sanction plan or any other document to show that previously the building had false ceiling, the exact dimension and expenditure incurred for repairing of false ceiling, the material used, the mode of repair, use of resources/manpower, quotation/ agreement/work order and its the terms and conditions - Ground no. 1 stands allowed for statistical purposes. Disallowance being difference in form 26AS and P L A/c - oversight TDS amount could not be deposited -HELD THAT - It is too the case of the Revenue Department here that the Assessee has already claimed the TDS during the relevant assessment year in respect of amount credited in the FY 2011-12 or any other assessment year. Hence, in view of the judgment of the Hon ble Punjab Haryana High Court in Abbott Agency 2013 (10) TMI 1173 - PUNJAB AND HARYANA HIGH COURT which was also relied upon in the case of M/s Kema India Private Ltd. Vs. ITO 2022 (4) TMI 109 - ITAT DELHI we are inclined to allow the claim of TDS in the year under consideration. Consequently, the addition made by the AO and sustained by the learned Commissioner, which is under consideration stands allowed. Ground-2 is allowed.
Issues Involved:
1. Condonation of delay in filing the appeal due to COVID-19 lockdown. 2. Treatment of repair of false ceiling as capital expenditure. 3. Disallowance of TDS credit. 4. Discrepancy in form 26AS and P&L account. Issue 1: Condonation of Delay The delay of 151 days in filing the appeal was attributed to the COVID-19 lockdown. The Assessee filed an application for condonation of delay, supported by a sworn affidavit. The Tribunal decided to condone the delay due to the lockdown period and the extension of limitation by the Hon'ble Apex Court. Issue 2: Treatment of Repair of False Ceiling The Assessee appealed against the disallowance of repair of false ceiling as capital expenditure. The AO and Commissioner treated the expenditure as capital in nature. The Assessee argued that the repair was necessary due to the modification of air conditioning ducts. The Tribunal found insufficient clarity on the extent of damage and replacement of false ceiling, remanding the issue to the AO for a fresh decision. Issue 3: Disallowance of TDS Credit The Assessee contested the disallowance of TDS credit, citing the payment by a tenant in a previous year and subsequent deposit in the current year. The AO and Commissioner disallowed the credit, but the Tribunal allowed it based on relevant judgments and the Assessee's claim. Issue 4: Discrepancy in Form 26AS and P&L Account The AO added a discrepancy amount to the Assessee's income due to differences in Form 26AS and P&L account. The Assessee provided explanations, but the AO found them unsatisfactory. The Commissioner partially affirmed the disallowance, leading to the Assessee's appeal. The Tribunal allowed the TDS claim, rendering the appeal on this issue infructuous. In conclusion, the Tribunal allowed the appeal for statistical purposes based on the issues discussed, including the treatment of repair expenses, TDS credit, and the discrepancy in financial records. The judgment provided detailed analysis and considerations for each issue, ensuring a fair and thorough review of the Assessee's claims.
|
