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TMI Blog2017 (12) TMI 1265X X X X Extracts X X X X X X X X Extracts X X X X ..... owards warehousing expenses being expenditure on repairs on the ground that the expenditure has resulted into enduring benefit in respect of capital asset held by the appellant and the same is in the nature of a capital expenditure. 3. Facts of the case are that the AO during the course of assessment proceedings noted that the assessee has debited a sum of Rs. 1,61,33,801/- towards warehousing expenses consisting of payment for cost of bricks, cement steel, TMT bars etc. Accordingly, the AO issued show cause notice to the assessee as to why the same should not be treated as capital expenditure which was replied by the letter dated 7.12.2011 by submitting that the assessee has repaired the compound wall which was broken at several places an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit that flow from the large scale expenditure incurred would certainly be over a period of several years to come and the same cannot be trivialized by claiming that it has no enduring benefit. It is seen from the profit & loss account that the appellant has received warehousing income of only Rs. 10 lakhs approximately, while it has other income runs into several crores of rupees. The meager income derived from warehousing facilities, as compared to the expenses incurred for renovating the warehousing facilities makes it clear that in order to earn income over a period of time, . certain additional investments have been made in the warehousing facilities. Therefore, the contention of the appellant that the expenditure amounting to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT(A) has grossly erred in upholding the order of the AO by not appreciating all the facts of the case in correct perspective. The ld. AR submitted that the said expenditure was incurred by the assessee for repairing the compound wall which was in a dilapidated condition and has to be repaired by incurring the said expenses such as excavation , labour charges and purchase of materials etc but all were revenue in nature. The ld. AR in support of his contention heavily relied on the decision of the Hon'ble Madras High Court in the case of CIT V/s Southern Roadways Ltd reported in (2008) 304 ITR 84(Mad). The ld. AR submitted before us that the expenditure incurred for the same be treated as revenue expenditure and accordingly prayed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices Private Limited (SKFS) on the ground that the assessee failed to deduct the tax at source. The ld. Counsel at the outset submitted that as per the second proviso to section 201 of the Act, the assessee has already furnished a certificate that the recipient has already offered the said amount in the income tax return and duly paid taxes thereon, therefore, the issue is covered by the second proviso to section 201 of the Act and hence no disallowance u/s 40(a)(ia) should be made and prayed that the same should be deleted. The ld. AR also placed on record a decision of the Hon'ble Delhi High Court in the case of CIT V/s Ansal Land Mark Township P Ltd reported in (2015) 377 ITR 635(Del) and stated that the Hon'ble Delhi High Court has d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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