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TMI Blog2018 (11) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... 25/03/2014. The grounds as raised in assessee's appeal ITA No.3999/Mum/2014 read as under:- 1:0 Re.: Disallowance of 'Repairs and Maintenance' expenses: 1:1 The Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in disallowing a sum of Rs. 41,40,241/- out of the total repair expenditure incurred by the Appellant. 1:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject the repairs and maintenance expenditure to the extent incurred by the assessee for the purposes of its business is deductible while computing its total income. 1:3 The Appellant submits that the Assessing Officer be directed to delete the disallowance so ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er be directed to delete the disallowance so made and to recompute its total income accordingly. 4:0 Re.: Non-allowance of loss on discarded livestock: 4:1 The Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in disallowing the loss incurred during the year on discarded livestock. 4:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject, the write-off loss of discarded livestock is deductible while computing its total income. 4:3 The Appellant submits that the Assessing Officer be directed to delete the disallowance so made and to recompute its total income accordingly. The grounds urged in revenue's appeal ITA No.41 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had three business divisions i.e. horse-racing, stud farm and an Ozone IT Park division which consists of letting out of fit-outs / furniture on hire. The assessee had developed and created an I.T. Infrastructure park namely Ozone IT Park at Pune which has been let out since Assessment Year 2004-05. The income from horse-racing and stud farm is assessed as business income whereas income from letting out of premises was reflected under the head Income from House Property & income from letting out of furniture & fixtures was reflected as Business Income. As evident from grounds of appeal, the subject matter of assessee's appeal is disallowance of repair & maintenance expenses, project expenses, interest disallowance u/s 36(1)(iii) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntions and perused relevant material on record including documents placed in the paper-book, financial statements and judicial pronouncements as cited before us. Our groundwise adjudication is given in succeeding paragraphs. 5.1 Ground Numbers 1 & 2 pertains to disallowance of repair & maintenance expenses and are inter-related grounds. The total expenditure claimed by the assessee under this head is Rs. 88.80 Lacs, out of which disallowance of Rs. 41.40 Lacs has been made by Ld. AO in view of the fact that the assessee was entitled for statutory deduction of 30% against Income from House Property whereas another disallowance of Rs. 31.80 Lacs has been made since the same, in the opinion of Ld. AO, was capital in nature and was required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006-07 also which reached up-to the level of this Tribunal vide ITA No. 2919,2955/Mum/2011 dated 28/10/2014 wherein we find that similar disallowance was made by Ld. AO. Upon further appeal, first appellate authority apportioned this expenditure on the basis of gross value of assets. The stand of first appellate authority was confirmed by the Tribunal. Therefore, since a particular manner of apportionment has been accepted by the Tribunal in AY 2006-07, respectfully following the same, we direct the Ld. AO to re-compute the disallowance after apportioning them on the basis of gross value of assets. The working of the same has been placed on page number 28 of the paperbook, a perusal of which reveal that the proportion of building in total a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appellate authority. However, since the findings of Ld. AO is based on erroneous assumption of facts, the issue has rightly been restored to the file of Ld. AO. The revenue's appeal stand dismissed. 5.4 The last addition of Rs. 10.27 Lacs stem from the fact the assessee claimed loss on discarded live stocks [horses] u/s 36(1)(vi). As per assessee's submissions, these horses were medically unfit for breeding and had no commercial use. The original cost of such livestock was claimed as deduction u/s 36(1)(vi). The said claim has been disallowed in view of the fact that the horses had not died and would fetch some value in the market, which assessee had not accounted for. In the absence of any corroborative evidence, this claim has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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