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TMI Blog2014 (1) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses – Held that:- The expenditure was incurred by the assessee solely in respect of the properties used by the assessee for business purposes - nothing is brought to our notice that the facts require any changes - Considering the business nature of the expenditure, the assessee entitled to claim the same as an allowable deduction - No disallowance is called for - the direction given by the CIT (A) for deletion of the addition on account of electricity charges, does not call for any interference – Decided against Revenue. - ITA No.6797/Mum/2011 - - - Dated:- 15-5-2013 - D Manmohan and D Karunakara Rao, JJ. For the Appellant : Shri Ashutosh Ranjhans, DR For the Respondent : Shri M Subramaniyan ORDER:- PER : D Karunakar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ktiongesellschaft (2008-TIOL-569-HC-MUM) was relied and the same is relevant for the proposition that where there is no element of income and the payment by way of reimbursement of expenses does not attract the provisions of section 40(a)(ia) of the Act. Accordingly, CIT (A) directed the AO to delete the disallowance. Aggrieved, Revenue carried the matter in appeal before the Tribunal by raising the ground no.1 mentioned above. 5. During the proceedings before us, Ld DR relied on the order of the AO. 6. On the other hand, Ld Counsel for the assessee relied on the order of the CIT (A). 7. We have heard both the parties on the issue raised in ground no.1 and perused the orders of the Revenue Authorities. Nothing is brought to our notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that no expenses need to be disallowed as the whole of it was spent for business purposes of the assessee only. Matter travelled to the CIT(A). 9. During the first appellate proceedings, on appreciating the submissions made by the assessee, CIT (A) directed the AO to delete the addition on account of electricity expenses. Para 4 and 4.1 of the impugned order are relevant in this regard. Aggrieved with the decision of the CIT (A), Revenue filed an appeal before the Tribunal by raising the ground no.2 mentioned above. 10. During the proceedings before us, Ld DR relied on the order of the AO. 11. On the other hand, Ld Counsel for the assessee relied on the order of the CIT (A) and reiterated the submissions made before the first appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et area and which houses six executive cabins, one design room, one computer server cabin, one big conference hall, one cafeteria and open space at the centre with cubicles and office modular furniture to accommodate around 25 employees. Further, separate space for display of product range of the company and space for storage of records is also provided within the said hired 2nd Floor of Suraj House. The builder had designed the entire floor to have four distinct shops with four different electricity meters and it was only at the request of the assessee that the proposed four distinct shops were clubbed into one premises covering the entire 2nd floor and accordingly was designated as 2/F, while entering into the leave and license agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for the assessee company to be imprudent to pay electricity charges which does not belong to it. Certificate received from Suraj Realtors on the stated position of 4 electricity meters installed on the 2nd floor premises let out to assessee and the requirement of payment of the said 4 bills by the assessee due to the fact that the whole of the 2nd floor premises are occupied by the assessee is enclosed for your kind perusal. 4.1. I have considered the submissions of the learned Counsel and in view of the facts brought on record and submissions made AO is directed to delete the disallowance. Thus, this ground of appeal is allowed. 13. The above extraction contains both the facts relating to this ground and the conclusion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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