9911796707
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Issues:
1. Disallowance of repairs expenses. 2. Disallowance of depreciation on photographic equipment. Analysis: 1. The assessee, a registered firm engaged in various businesses, including a photographic business, appealed against the disallowance of Rs. 11,038 for repairs and maintenance. The Income Tax Officer (ITO) disallowed the amount debited to the Vatav account for furniture repairs and maintenance. The Appellate Tribunal found in favor of the assessee, stating that the expenditure on repairs did not provide an enduring benefit, and therefore, the disallowance was deleted. The assessee succeeded on this point. 2. Regarding the disallowance of depreciation on photographic equipment costing Rs. 59,168, the ITO disallowed the expenditure, claiming that the business activity had not actually started, and no income was derived from it. The Appellate Tribunal disagreed with the ITO's decision, noting that the assessee had indeed started a new business venture involving metal printing with photographs. The Tribunal observed that the printed materials on metal presented by the assessee demonstrated an attempt to expand their existing business. The Tribunal distinguished the case cited by the departmental representative and allowed the depreciation claim, stating that the assessee was entitled to it. As a result, the assessee succeeded on this issue as well, and the appeal was partly allowed. In conclusion, the Appellate Tribunal ruled in favor of the assessee, overturning the disallowances made by the lower authorities on repairs expenses and depreciation on photographic equipment. The Tribunal recognized the legitimate business activities undertaken by the assessee and allowed the relevant claims, ultimately partially allowing the appeal.
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