9911796707
TMI Blog2016 (12) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... ng from the assessment order dated 22nd February, 2013 passed by the learned Assessing Officer (hereinafter called "the AO") u/s 143(3) of the Income Tax Act,1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") read as under:- "I. DISALLOWANCE OF REPAIRS AND MAINTENANCE EXPENSES OF Rs. 5,36,217/- BY TREATING THE SAME AS CAPITAL EXPENDITURE. 1. The Learned CIT(A) erred in confirming disallowance of the repairs and maintenance expenses on factory building of Rs. 5,36,217/- paid to Prabhu Constructions, treating the same as capital - expenditure after allowing depreciation thereon of Rs. 53,622/-. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was pointed out to the assessee that the similar issue arose for consideration before the then A.O. in the preceding year i.e. assessment year 2009-10 whereby certain amount of expenditure incurred on account of repairs to factory building was capitalized and the same has also been upheld by the ld.ClT(A) and it was confronted to the assessee that as to why the similar stand should not be taken on this count in the year under consideration. The submission of the assessee were considered by the AO but the same were not acceptable to the AO as some of the items noticed from the bills raised by M/s. Prabhu Constructions furnished by the assessee appeared to be in the nature of capital expenditure to the AO and as such in the opinion of the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had five different units at different location having huge area. The details of units on which the repairs & paintings are as under:- - Unit I at Marol Andheri East (21389 sq. ft.) - Unit II at Vasai Village - Gokhiware (8135 sq. ft.) - Unit III at Navghar, Vasai (E) (5430 sq. ft.) - Unit V at Vasai Chinchpada, Village - Gokhiware (28328.20 sq. ft.) The assessee submitted that the factory buildings were purchased/constructed in years 1971-72, 1997-98, 1989-90, 2002-03, 2004- 05 and the repairs were carried out to keep the premises in usable condition, there is no new asset which came into existence due to the repairs conducted by the assessee. It was submitted that all the premises are very old, requires repairs & maintenance to keep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 held that these expenses are capital in nature and the expenditure debited in the books of account is of the nature of putting Kota Marble, flooring, concrete, shutter and window patti etc. which would increase the life and value of the building and would also provide enduring benefits to the business. The expenditure was confirmed to be of capital nature by learned CIT(A) in identical circumstances while deciding the appeal of the assessee for the assessment year 2009-10. Thus , the action of the A.O of disallowing the expenditure as revenue expenditure , and instead treating the same as capital expenditure and allowing the depreciation on the same was confirmed by learned CIT(A) vide appellate orders dated 09-10-2014 . 6.Aggrieved by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... page 5 to 10 filed with the Tribunal. We have observed that the same are incurred towards demolishing of existing structure, plastering, masonary , pipe fitting , window removing & fitting, repairing, painting work, civil work, plastering, concrete, replacement of flooring, Kota with marble polish etc. . We have observed that similar expenses were also incurred by the assessee in the immediately preceding assessment year which were allowed by the Tribunal by holding the same as revenue expenditure in ITA No. 1185/Mum/2013 for the assessment year 2009-10 vide orders dated 20th April, 2015 , whereby the Tribunal held as under:- "The solitary issue urged in the appeal filed by the assessee is whether the Ld CIT(A) was justified in upholding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
