9911796707
TMI Blog2011 (4) TMI 1290X X X X Extracts X X X X X X X X Extracts X X X X ..... airs. The brief facts are that the assessee incurred the following expenditure and claimed the same as deduction on account of repairs: - Sr. No. Name of the billing party Nature of work Amount (Rs.) 1. C Bhogilal West End Purchase of Tiles 77,011/- 2. Constrocare Concrete Therapy Purchase of Laticrate 37,156/- 3. Real Marble Traders & Contractors Purchase of granite 22,920/- Total 1,37,087/- Sr. No. Name of the billing party Nature of work Amount (Rs.) 1. Anupam Aluminium & Hardware Aluminium Sections 1,97,091/- Total 1,97,091/- While completing the assessment under section 143(3) of the Income Tax Act, 1961, the Assessing Officer took the view that the expenditure represented capital expenditure. He therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to the existing toilet facilities to the workmen. 4. On a careful consideration of the rival contentions we are of the view that so far as the purchase of aluminium sections for ₹ 1,97,091/- is concerned, the expenditure cannot be considered as capital expenditure. It is nobody's case that by incurring the expenditure the assessee has created additional space. The explanation of the assessee that the aluminium sections were used for the sliding windows seems plausible. Even if it is assumed that the existing doors of the windows were replaced by sliding windows with aluminium frames, it cannot be said that a new asset of enduring benefit was brought into existence. At best it can only be a case of replacement of the doors which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicability of section 2(22)(e) the recipient of the amount from the company has to be a registered shareholder of the company. In the present case the following credit balances were shown in the assessee's account in the following companies: - (i) M/s Bhavin Containers P. Ltd. ₹ 38,75,412/- (ii) M/s Patel Aluminium Pvt. Ltd. ₹ 93,978/- (iii) M/s Lans Metal Pvt. Ltd. ₹ 28,94,357/- (iv) M/s Patcart Packaging Pvt. Ltd. ₹ 44,31,466/- The finding of the CIT(A) is that the assessee is not a shareholder in any of the aforesaid companies. According to the Assessing Officer, one M I Patel who was a director of the assessee company held more than 10% of the equity shares of the above four companies and he also he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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