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TMI Blog2017 (7) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... cation in the reasoning of Assessing Officer confirmed by ld. CIT(A) because value of building as per books primarily represented written down value of building. The assessee had explained that the building was more 10-15 years old. The assessee had incurred these expenses throughout the year and since the building was old, therefore, it required regular repairs. Under these circumstances,the expenses incurred by assessee were only for the purposes of repair and maintenance of building and, therefore, allowable as revenue expenditure. In the result, this ground is allowed. Expenses on account of vehicle running and maintenance - Held that:- In the present set of facts, the Assessing Officer primarily doubted that the payment was made in one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Return declaring an income of ₹ 2,11,020/- was filed. The assessment was completed at a total income of ₹ 17,37,100/-, inter-alia, making addition of ₹ 3,58,090/- treating the expenses incurred for building repairs and maintenance as capital expenditure and also an addition of ₹ 1,71,354/- u/s 40A(3) of the Act. The assessee's claim of loss on sale of fixed assets amounting to ₹ 9,19,756/- was disallowed by the Assessing Officer. Ld. CIT(A), while partly allowing the assessee's appeal, confirmed all the three additions except reducing the disallowance u/s 40A(3) from ₹ 1,71,354/- to ₹ 1,38,821/-. Being aggrieved, the assessee is in appeal before the Tribunal and has taken following grounds of appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts apropos ground no.2 are that the Assessing Officer noticed from Profit & Loss Account of M/s Budhwar Engineering Works that assessee had incurred expenses of ₹ 8,55,908/- on account of repair and maintenance, during the year under consideration. From reply filed by the assessee, the Assessing Officer noticed that the expenses included expenses on account of building repair and maintenance of ₹ 3,97,878/-. He noted from the Balance Sheet that the value of building in the schedule of fixed assets was shown at ₹ 2,46,672/-. Keeping in view the value of building vis-à-vis quantum of expenses claimed as repair and maintenance, he required the assessee to justify the expenses incurred along with supporting documents a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer concluded that the expenses were in capital filed primarily because in the fixed assets schedule the value of building was shown at ₹ 2,46,672/-. I do not find any justification in the reasoning of Assessing Officer confirmed by ld. CIT(A) because value of building as per books primarily represented written down value of building. The assessee had explained that the building was more 10-15 years old. The assessee had incurred these expenses throughout the year and since the building was old, therefore, it required regular repairs. Under these circumstances, I am of the considered opinion that the expenses incurred by assessee were only for the purposes of repair and maintenance of building and, therefore, allowable as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on record a concrete evidence from M/s Harsh Auto Care by Assessing Officer. It is true that the onus lies on assessee to substantiate its claim but at the same time if assessee has discharged its primary onus then it is for the Assessing Officer to bring evidence on record to contradict the assessee's claim. It is well settled law that suspicion, howsoever strong, cannot replace the evidence. I, therefore, do not find any reason for rejecting the assessee's claim of payment being made for less than ₹ 20,000/- over the period as per ledger account. In the result, this ground is also allowed.
8. Resultantly, the appeal of the assessee is partly allowed.
Order pronounced in the open court on this 09th day of March, 2017. X X X X Extracts X X X X X X X X Extracts X X X X
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