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TMI Blog2018 (2) TMI 1625X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee which may result in an enduring benefit or the expenditure are of regular nature. As regards the payment of excise duty, the Assessing Officer after ascertaining the facts from the assessee and verifying the same must disallow the payment made towards penalty as it is not allowable under section.37(1). With the aforesaid observations, we uphold the order of the ld.PCIT to the extent indicated above. - ITA No. 4124/Mum/2017 - - - Dated:- 15-12-2017 - Shri Saktijit Dey, Judicial Member And Shri N. K. Pradhan, Accountant Member Appellant by : Shri Dipak J. Shukla Respondent by : Shri Rajeshwar Yadav ORDER Persaktijit Dey, J. M. This is an appeal filed by the assessee against order dated 30.03.2017 passed un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h expenditure is of capital in nature. 3. Further, he observed that excise duty penalty being of penal nature cannot be allowed as business expenditure. Since, without making any enquiry or examining the allowability of such expenditures the Assessing Officer has allowed the same,ld. PCIT held the assessment order to be erroneous and prejudicial to the interest of revenue and called upon the assessee to explain why the assessment order should not be revised. 4. In response to the show cause notice, the assessee submitted its reply stating that the Assessing Officer after examining the issue having allowed the expenditure, the assessment order cannot be erroneous and prejudicial to the interest of revenue. As far as the issue of expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and excise duty. In this context, he drew our attention to the documents filed in the paper book. The learned Authorised Representative submitted, since the Assessing Officer after examining the evidences and applying his mind, has passed the assessment order, it cannot be considered to be erroneous and prejudicial to the interest of the Revenue so as to empower the ld. PCIT to revise under section.263 of the Act. As far as the merits of the issue is concerned, the learned Authorised Representative submitted, the assessee has carried out regular repair works to the existing building and by such expenditure no enduring benefit has accrued to the assessee. Therefore, he submitted,such expenditure for repairs has to be treated as revenue in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section. 37(1) of the Act. The Assessing Officer completely ignoring the statutory provision has allowed assessee s claim. He submitted, without making any enquiry the Assessing Officer has allowed deductions to the assessee which are otherwise not allowable.Therefore, the assessment order is erroneous and prejudicial to the interest of the revenue as contemplated under section.263 of the Act. 8. We have heard rival submissions and perused the material on record. A perusal of the impugned assessment order reveals that It is a cryptic and non speaking order.The Assessing Officer has accepted the returned income without making any discussion. The Assessing Officer nowhere in the assessment order has even mentioned whether he has examined t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of expenditure incurred towards repairs and maintenance of the building before allowing it. Therefore, the facts on record clearly indicate that the Assessing Officer before allowing the deductions claimed by the assessee has not made any enquiry at all, which rendered the assessment order erroneous and prejudicial to the interests of revenue. That being the case, the ld. PCIT was justified in revising the assessment order under section.263 of the Act. The decisions relied upon by the learned Authorised Representative will not apply to the facts of the present case as we have factually found that the Assessing Officer has not made even a semblance of enquiry on the issues pointed out by the PCIT. As far as the merits of the issues ..... X X X X Extracts X X X X X X X X Extracts X X X X
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