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TMI Blog2016 (12) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... ACCOUNTANT MEMBER For The Assessee : Shri Neomi Lakhpatia For The Revenue : Shri Naveen Gupta (D.R.) ORDER PER RAMIT KOCHAR, Accountant Member This appeal filed by the assessee being ITA No. 117/Mum/2015, is directed against the appellate order dated 9th October, 2014 passed by learned Commissioner of Income Tax (Appeals)- 16, Mumbai (hereinafter called the CIT(A) ), for the assessment year 2010-11, the appellate proceedings before the learned CIT(A) arising 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 ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses and to show cause as to why the expenses on account of repairs to building (factory) should not be capitalized and also to furnish copies of the relevant bills and vouchers. The assessee produced copies of the bills raised by a civil contractor viz. M/s. Prabhu Constructions. On perusal of the same , it was observed by the AO that certain items of expenditure included in those bills are in the nature of capital expenditure and the same needs to be disallowed as revenue expense as claimed by the assessee. It 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 fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tti granite 41778.00 15 14.08.2009 Kota with mirror polish 176922.20 28 08.10.2009 Concrete demotion 421.75 Flooring 13626.90 Shield 4433.80 5 22.05.2009 Concrete 44625.00 Concrete with soling fixing by sand 81982.50 Concrete and rubble soling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was submitted by the assessee that the repairs and maintenance expenditure incurred were necessary to maintain the productive capacity of the building and are in the nature of current repairs which are allowable as per Section 30 of the Act and these are not capital expenditure as demolition does not give rise to any new capital structure. It was submitted by the assessee that the plastering, window demolishing fitting, painting work, civil work, plastering, concrete, replacement of flooring etc are revenue expenditure and allowable as current repairs u/s 30 of the Act. It was submitted that no new asset came into possession nor any enduring advantage was obtained by the assessee by incurring these expenditure which are in nature of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 09-10-2014 passed by the ld. CIT(A), the assessee filed appeal with the Tribunal. 7. The ld. Counsel for the assessee submitted that similar issue arose in the preceding assessment year 2009-10 before the Tribunal, whereby the Tribunal in ITA No. 1185/Mum/2013 for the assessment year 2009-10 vide appellate orders dated 24th April, 2015 allowed the claim of the assessee toward repair and maintenance expenditure by holding the same to be revenue expenditure and, hence, the matter is covered by the afore-stated decision of the Tribunal for assessment year 2009-10 as the facts are identical in the instant assessment year. 8. The ld. D.R. relied on the order of the authorities below. 9. We have considered the rival contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of Repairs and maintenance expenses of ₹ 19,12,723/- by treating the same as Capital expenditure. 2. We heard the parties and perused the record. The Ld A.R invited our attention to page no.6 of the paper book and submitted that the expenditure of ₹ 19,12,723/- was incurred only to repair and maintain the existing buildings. The nature of expenses incurred by the assessee are given in page no.6 as under:- 3. A perusal of the above said expenditure would show that there is merit in the submissions of the assessee. Though the Ld D.R strongly defended the order of Ld CIT(A), yet we are convinced that the assessee has incurred the impugned expenses on repair and maintenance of the existing building by r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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