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TMI Blog2022 (7) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... et. No contrary material has been brought on record by assessee to demonstrate that by incurring the expenditure, assessee has not derived any enduring benefit. That being the factual position, we cannot accept assessee s claim as revenue expenditure. However, as directed by Commissioner (Appeals), once, the expenditure is treated as capital expenditure, assessee must be granted benefit of depreciation in accordance with law. Disallowance u/s 40A(3) - cash payment made by assessee exceeds the threshhold limit of Rs.20,000 per day as per section 40A(3) - HELD THAT:- Before Commissioner (Appeals), assessee had claimed that the expenditures are in the nature of reimbursement of petrol expenses incurred by the employees and have been made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing has already been granted to assessee, in our view, assessee deserves no further opportunity. Accordingly, we proceed to dispose of the appeal ex parte qua the assessee after hearing learned Departmental Representative and based on material available on record. Grounds raised by the assessee are as under: 1. That the learned Commissioner (Appeals) has grossly erred in law and on facts in confirming the disallowance of Rs.15,000/- claimed on account of legal and professional expenditure. 2. That the learned Commissioner (Appeals) has grossly erred in law and on facts in confirming the action of the AO of capitalizing the expenditure of Rs.6,05,470/- incurred towards professional fee paid to contractor for building, designin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,800 towards repair and maintenance of vehicle. On further scrutiny, assessing officer found that the entire expenditure was incurred in cash and exceeding the threshold limit of Rs,20,000. Accordingly, applying the provisions of Section 40A(3) of the Act, he disallowed the same. 8. Contesting the aforesaid additions/disallowances, assessee preferred appeal before learned Commissioner (Appeals). While disposing of the appeal learned Commissioner (Appeals) granted partial relief. 9. As regards, first issue relating to disallowance of legal and professional charges of Rs.15,000, on perusal of record, it is evident, assessee was unable to furnish any supporting evidence to demonstrate that the amount was actually incurred for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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