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TMI Blog2018 (7) TMI 2349X X X X Extracts X X X X X X X X Extracts X X X X ..... n. If the advantage merely facilitates the assessee s trading operation or enabling the management to conduct the assessee s business to be carried on more effectively or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure of an indefinite future. Considering the expenditure incurred in the present case for for plastering, flooring, replacement of doors, electrical fittings, plumbing, laying sheets and roofs, resurfacing road, etc. the same can be said to be incurred to preserve and maintain an already existing unit. Under the circumstances, the learned ITAT has rightly held the aforesaid expenditure incurred as revenue expenditure and has rightly allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant : MRS MAUNA M BHATT (174) For the Respondent : MR MANISH J SHAH (1320) ORAL ORDER (PER : HONOURABLE MR. JUSTICE M.R. SHAH) 1. Feeling aggrieved and dissatisfied with the impugned order dated 08.05.2017 passed by the learned Income Tax Appellate Tribunal, Ahmedabad `I Bench ( ITAT ) in IT(TP)A.No.462/AHD/2016 for the Assessment Year 2009-10, by which the learned ITAT has dismissed the said appeal preferred by the Revenue and has confirmed the order passed by the learned Commissioner of Income Tax (Appeals), Ahmedabad, the Revenue has preferred the present appeal with the following proposed questions of law: (A) Whether the Appellate Tribunal has erred in law and on facts by considering the amount of Rs. 3,17,72,744/- that was spent on co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me as capital in nature and therefore made the disallowances of the expenses. The A.O. also made the disallowance under Section 40(a)(ia) amounting to Rs. 17,11,387/- on the ground that on the clearing and forwarding charges on export, no TDS was deducted on said payments. The learned A.O. made the deletion on Transfer Pricing Adjustments of Rs. 23,51,667/- which was paid by the assessee as guarantee commission. 3.2 Feeling aggrieved and dissatisfied with the order passed by the learned A.O. making above deletion/ disallowances, the assessee preferred appeal before the learned CIT(A). The learned CIT(A) by a speaking and reasoned order held the expenses incurred for repair etc. as revenue expenditure and thereby set aside the order passed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses. On the other hand, Shri Manish J. Shah, learned counsel appearing on behalf of the respondent-assessee has heavily relied upon the decision of the Hon ble Supreme Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1/3 Taxman 69 which has been subsequently followed by the Division Bench of this Court in the case of Commissioner of Income-Tax v. Cama Hotels Ltd. - [2015] 63 taxmann.com 27 (Gujarat). Having heard the learned counsel appearing on behalf of the respective parties, the proposed Question (A), the expenses incurred, namely, for plastering, flooring, replacement of doors, electrical fittings, plumbing, laying sheets and roofs, resurfacing road, etc. cannot be said to be renovation and can fall within the definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urred as revenue expenditure and has rightly allowed the deduction as claimed by the assessee. No substantial question of law arises in this regard. 6. Now so far as the proposed Question (B), namely, deleting the addition made u/s. 40(a)(ia) of the Act amounting to Rs. 17,11,387/- is concerned, as noted by the learned CIT(A) as well as the learned ITAT, in the earlier order, similar disallowance was deleted by the learned CIT(A) which came to be confirmed by the learned ITAT and the same has attained finality. Under the circumstances, no error has been committed by the learned ITAT in confirming the deletion of the addition made u/s. 40(a)(ia) of the Act. No substantial question of law arises. 7. Now so far as the proposed Question (C), i. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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