9911796707
TMI Blog2004 (2) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, the relevant facts in brief are that the assessee originally filed its return of income on 29th Nov., 1994, which was processed under s. 143(1)(a) on 20th March, 1995. However, the case was later on selected for scrutiny and the AO while passing order under s. 143(3), dt. 30th Dec., 1996, made the impugned addition by observing as under : "The assessee has debited Rs. 76,899 in P L a/c but the same were not deposited by the assessee in his own name and deposited the same in the name of M/s Bhilwara Industrial Corpn. Since the PF and ESI were not deposited in the name of assessee-company, hence the same is disallowed and added back to the income of assessee." The assessee has carried the matter to the learned CIT(A), who restored the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee. He also observed that the assessee had filed a resolution of the company in support of its claim. He accordingly deleted the addition made by the AO. Now the Department is in appeal. 3. The learned Departmental Representative strongly supported the order of the AO. However, he could not controvert the findings of the learned CIT(A). In his rival submissions, the learned counsel for the assessee reiterated the submissions made before the authorities below. 4. We have considered the rival submissions and also gone through the material on record. In the present case, it is not in dispute that the business of old firm M/s Bhilwara Industrial Corpn. had been taken over by the assessee-company in the shape of a running concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed a sum of Rs. 56,850 claimed by the assessee as expenses for repairs and maintenance of plant and machinery. According to the AO, the said expenses were incurred on account of conversion of looms. He, therefore, considered the same as capital expenditure instead of revenue, as claimed by the assessee. The AO also considered site expenses of Rs. 18,904 as capital expenditure instead of revenue, as claimed by the assessee. Accordingly, the disallowances were made. When the assessee carried the matter to the learned CIT(A), he observed that the copies of bills and vouchers filed by the assessee had shown that the expenses were of petty repairs. He also mentioned that the AO had observed in the assessment order that the looms for which re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the aforesaid details, it would be clear that the site development expenses were incurred on different dates related to the soil trips, levelling, labour charges, etc. From the above details, it would be clear that none of the expenses were capital in nature. We, therefore, do not see any infirmity in the action of the learned CIT(A) as regards the deletion of disallowance of Rs. 18,904 is concerned. For the remaining expenses, which were mainly claimed, related to repairs of plant and machinery, it would be clear from pages Nos. 50 and 51 of the paper book that the expenses had been incurred for loom conversion and the labour related to that. We are unable to find any material on record which would suggest that the nature of the lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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