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TMI Blog2012 (10) TMI 780X X X X Extracts X X X X X X X X Extracts X X X X ..... e of bad debts - amount forfeited by the landlord, on account of notice period rent, outstanding rent, water and electricity charges - Held that:- The assessee has submitted that all these items are of revenue nature as had the security was not adjusted then equal amount would have been paid by the assessee and it could get refund of security. The situation will remain the same. As far as the advance given to the lorry vendor is AO did not investigate the issue with the angle whether it is a revenue expenditure or not & simply disallowed. Thus FAA has considered all other details and thereafter deleted the disallowance no force in the ground of appeal raised by the revenue - in favour of assessee. - ITA No. 3468/Del/2011 - - - Dated:- 12-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and the payments etc. through account payee cheque or otherwise. He observed that a total sum of Rs.4,11,740 was incurred for repair and maintenance of the office, which according to him cannot be allowed as a deduction because the nature of expenditure is of capital. With regard to the repair and maintenance incurred on other items i.e. on UPS, electrical wire etc., learned Assessing Officer has observed that a sum of Rs.71,876 is to be treated as incurred in the capital field. He made the disallowance of both the amounts. 3. On appeal before the Learned CIT(Appeals), it was contended by the assessee that under the head repair and maintenance of the office , assessee has debited total amount of Rs.3,73,547. Learned Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g nature. Therefore, Learned CIT(Appeals) has rightly observed that the expenses incurred by the assessee are of revenue nature, which were incurred in order to carry out current repairs in the office as well as on other items so that the office premises can be used more effectively for the purpose of the business. After going through the order of the Learned CIT(Appeals), we do not find any error in the order of the Learned CIT(Appeals) on this issue. 5. In ground No.3, the grievance of the revenue is that Learned CIT(Appeals) has erred in deleting the addition of Rs.8,53,698 which has been added by the Assessing Officer by making a disallowance out of bad debts. 6. The brief facts of the case are that on scrutiny of the accounts, it r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee carried the matter in appeal. It submitted that if a loss is not allowable as a bad debt but there is no dispute with regard to bona fide loss arising in ordinary course of carrying on business, which is of a revenue in nature then such a loss is to be allowed as a business loss. In support of its contention, the assessee relied upon the two orders of the ITAT, namely, Jal Pradeep Security Ltd. vs. DCIT reported in 4 ITR (Trib.) 491 and Indian Infolines Securities Pvt. Ltd. Vs. ACIT reported in 25 SOT 123. It also relied upon the judgment of Hon'ble Supreme Court in the case of Badridass Daga vs. CIT reported in 34 ITR 10 and in the case of CIT vs. Mysore Sugar Co. Ltd. reported in 46 ITR 649. Learned CIT(Appeals) has reproduced th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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