9911796707
TMI Blog1978 (9) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee claimed a sum of Rs.19,450 on account of travelling expenses. However, according to the ITO the details were not furnished and he accordingly allowed only Rs. 4,000. Again, the assessee spent some money for purchase of tiles for service station on the workshop gate. The ITO was of the opinion that these monies were capital items and he accordingly disallowed a sum of Rs. 7,090.16. He also added back a sum of Rs. 4,600 out of the commission paid by the assessee to drivers bringing their cars to the service station. Similarly, he disallowed a sum of Rs. 3,500 out of the general expenses and Rs. 2,500 out of the expenses for staff. One of the partners, Smt. Krishnadevi Hasija had a debit balance of Rs. 33,925 for which he added back a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raders for workshop gate 400-00 . To cheque gate Iron Traders for workshop gate 1333-35 17-7-1973 To cheque Blue Bird Agency for 1 fan, motor, motor for water-cooler, 175-00 29-8-1973 To cheque HA Iron Works for Channel gate for workshop. 1149-54 3-10-1973 To cash MS Iron Works for fitting charges of gates. 400-00 5-10-1973 To M/s Fred Nichol & Sons, Bombay for repairs of the workshop. 500-00 6-12-1973 To cash Tooemits Ltd. Bombay for value and housing pipe for service station. 993-55 16-2-1974 To cheque Ghori Steel Corporation for one rolling shutter. 1214-30 . . Rs. 7090-16 The reason for that, according to the ITO and the AAC was these expenses had been incurred on installation of capital assets on the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t position after the addition of any work by way of renovation or extension or improvement to the building, then it might be treated to be capital expenditure for the purpose of this Act which earlier it might not. It, however, does not mean that all these items should be treated as items of capital expenditure. If they are by way of repairs, they cannot be said to be improvements. For example, if the iron gates referred to in the case disallowed items were already there and for any reason they have worn out, they would be considered to be repairs and not an expenditure of a capital nature. In this behalf the assessee placed reliance upon 105 ITR 339 wherein it has been held that even if the expenditure incurred by the assessee was of a non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed a sum of Rs. 2,500 which was reduced to Rs. 1,500 on appeal. This is a big concern and naturally it would like to keep the members of the staff happy. Apparently, there is no reason why insistence should be made upon such minute details in case expenses for staff would be incurred by an assessee to get good work out of it. The disallowance is, therefore, deleted altogether. 8. The next dispute relates to expenses on account of sale promotion. Last year the allowance was of Rs. 3,388. The business of the assessee had increased, but the AAC had allowed only Rs. 3,000. We would, therefore, allow another Rs. 1,000. 9. Another dispute relates to the telephone expenses. Part the expenditure of course relates to telephone installed at th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
