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TMI Blog2018 (1) TMI 1753X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for A.Y. 2002-03 being ITA No. 1666/K/2017 which is directed against the order of Ld. CIT(A) - 2, Kolkata dated 07.04.2017. 3. The issue involved in ground no 1 of this appeal relates to the disallowance of Rs. 39,000/- made by the A.O. and confirmed by the Ld. CIT(A) on account of deduction claimed by the assessee for rent paid in respect of commercial space hired. 4. The assessee in the present case is a company which is engaged in the business of trading in printing papers & material. The return of income for the year under consideration was filed by it on 23.09.2002 declaring a total income of Rs. 3,63,350/-. In the said return, the rental income of Rs. 3,90,000/- received by the assessee company was declared under the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales Company. He, however, disallowed the deduction claimed by the assessee on account of rent payable to M/s. Print Sales Company mainly on the ground that such rent was not paid by the assessee company to the said owner. As submitted by the learned counsel for the assessee at the time of hearing before the Tribunal, the assessee company has paid the said rent to M/s. Print Sales Company in the F.Y. 2003-04 and this position can be established by it on evidence if the matter is sent back to the A.O. for verification. Since the learned DR has also not raised any objection in this regard, I set aside the impugned order of the Ld. CIT(A) on this issue and restore the matter to the file of the A.O. for deciding the claim of the assessee for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the same as unproved. 9. During the year under consideration, the assessee company had raised various debit notes on account of goods returned back to the suppliers. According to the A.O., the assessee company however failed to establish the genuineness of the debit notes claimed to be issued by it. He also held that the assessee company had failed to prove as to whether the corresponding purchases were recorded in its books of accounts or not. He further noted that the time taken by the assessee company to return the goods in some cases was more than one year. According to him, the assessee company thus had tried to suppress its purchases by issuing debit notes when such purchases were not recorded in its books of accounts. He, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd deleting the same, I allow ground no 1 of the assessee's appeal for A.Y. 2003-04. 11. As regards the issue raised in ground no 2 of the assessee's appeal for A.Y. 2003-04 relating to the addition of Rs. 5,049/- made by the A.O. on account of alleged gross profit earned by the assessee from the purported sales made from the unaccounted purchases, it is observed that same is consequential to the issue involved in ground no 1 of the assessee's appeal. Keeping in view our decision rendered on ground no 1 deleting the addition made by the A.O. on account of alleged unaccounted purchases, I delete this consequential addition made by the A.O. and allow ground no 2 of the assessee's appeal. 12. The issue raised in ground no 3 of assessee's app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l available on record. The learned counsel for the assessee has placed on record the details of office and godown expenses in question incurred by the assessee during the year under consideration at page no 28 and 29 of the Paper Book and a perusal of the same shows that the said expenditure was mainly incurred by the assessee on repairs and renovation of storage racks used in the godown. As rightly contended by him, the said expenditure thus did not result in any enduring benefit to the assessee company in the capital field and the same having been incurred on repairs and replacement is liable to be allowed as revenue expenditure. The description given in the relevant bills, copies of which are also placed on record before the Tribunal, al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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