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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 ..... enue 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 complete renovation of the factory building involving plastering, flooring, replacement of doors, electrical fittings, plumbing, laying sheets and roofs, resurfacing road, etc. as revenue expenditure instead of capital expenditure? (B) Whether the Appellate Tribunal has erred in law and on facts by deleting the addition made u/s.40(a)(ia) of the Act amounting to Rs. 17,11,387? (C) Whether the Appellate Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 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 by the A.O. disallowing the said expenses. The learned CIT(A) considering the decision in the case of very assessee in earlier assessment order by which similar disallowance was deleted, in the year under consideration also allowed the deduction as claimed by the assessee. The learned CIT(A) also quashed and set aside the order passed by the CIT(A) on Transfer Pricing Adjustment. On appeal by the Revenue, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 definition of `repair'. At this stage, it is required to be noted that the property in question in which the aforesaid work was done is a leased property. In the case of Empire Jute Co. Ltd. v. CIT (supra), the Hon'ble Supreme Court has held that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit, may nonetheless, be on revenue account and the test of endur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce 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.e. deleting the addition made on account of Transfer Pricing Adjustment of Rs. 23,51,667/- is concerned, apart from the fact that in the case of the very assess in earlier year, similar addition was deleted, even on merits also, the learned ITAT has observed as under:- "17. There is no dispute that all the three entities that is the assessee company, the lender company and the guarantor com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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