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TMI Blog2013 (11) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... used by the assessee for its business purposes - No new asset has been created by the assessee – Decided in favour of assessee. - IT Appeal No. 3715 (Mum.) OF 2011 - - - Dated:- 2-1-2013 - Order The order of the Bench was delivered by B. R. Mittal (Judicial Member).-The assessee has filed this appeal for the assessment year 2005-06 against the order of the learned Commissioner of Income-tax (Appeals) dated February 21, 2011 disputing the confirmation of disallowance of sum of Rs. 10,29,880 considering it as capital expenditure instead of revenue expenditure as claimed by the assessee. The relevant facts are that the assessee debited a sum of Rs. 26,44,423.29 against business income under the head "repairs and maintenance". The As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items which are mentioned in the bills has held that the expenditure of amount of Rs. 10,29,880 is not the revenue expenditure but is the capital expenditure on account of addition to building improvement. The Assessing Officer after allowing the depreciation of Rs. 36,497, disallowed the balance amount of Rs. 9,93,383 and added to the business income of the assessee. Being aggrieved, the assessee filed an appeal before the first appellate authority. On behalf of the assessee, it was contended that the assessee incurred the expenditure on the repair of the building of which the assessee is not the owner and the said expenditure did not result in creation of new asset. Expenditure incurred towards re-doing or repairing of the assets alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the rented premises. Therefore, in view of the reasons stated above and also in view of detailed discussion made by the Assessing Officer in the order, I am of the opinion that the Assessing Officer has correctly disallowed Rs. 10,29,880 as capital expenditure out of the claim of Rs. 26,44,423 made as revenue expenditure by the appellant in the profit and loss account. Further, out of the total capital expenditure of Rs. 10,29,880, depreciation as applicable under section 32 of the Act and as per the schedule at Rs. 36,497 was correctly computed which resulted in net addition of Rs. 9,93,383 to the income of the appellant. The addition made is accordingly confirmed. The ground of appeal is dismissed. Hence, this appeal filed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure incurred on replacement of a old diesel engine by a new one in the motorvan used and kept by the assessee for its own business is a revenue expenditure. Further, the Bombay High Court has also held in the case of Addl. CIT v. India United Mills Ltd. [1983] 141 ITR 399 (Bom) that expenditure incurred for substituting the old worn-out doors by fireproof doors and for renewal of the roof of the bleaching house, to get more light in to the factory premises is expenditure deductible as current repairs. The hon'ble Karnataka High Court has held in the case of CIT v. B. V. Ramachandrappa and Sons [1991] 191 ITR 34 (Karn) that where the expenditure was incurred on replacement of old barbed wire around the compound by a compound-wall and also th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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