9911796707
TMI Blog2019 (10) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... be capital in nature - HELD THAT:- As expenditure incurred by the assessee for smooth running of its business is to be allowed as revenue expenditure. Further, by incurring the expenditure, no new asset had come into existence and hence, there is no merit in making the aforesaid disallowance in the hands of the assessee except the expenditure. Accordingly, we allow the expenditure as revenue expenditure in the hands of the assessee and direct the AO to capitalize the expenditure and allow depreciation on the same. Disallowance of travelling expenditure holding the expenditure to be personal in nature - HELD THAT:- In the hands of the assessee, the expenditure has been incurred by the assessee on the travelling of the Directors and other em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g this expenditure as Business Expenditure. 4. That the appellant craves, leave to add, amend or alter any grounds of appeal either before or at the time of hearing of appeal. 3. The first issue raised by the assessee is against the disallowance made u/s 14A of the Income Tax Act, 1961 (in short Act ) at Rs. 1,36,85,065/-. The Ld.AR for the assessee at the outset pointed out that the disallowance if any, u/s 14A of the Act could not exceed the exempt income which was Rs. 2,61,000/- during the year. In this regard, he placed reliance on the ratio laid down by Hon ble Delhi High Court in the case of Joint Investment P. Ltd. vs CIT 372 ITR 694 (Del.). 4. The Ld. DR for the Revenue placed reliance on the orders of the authorities below. 5. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d expenditure, but allowed depreciation on the same and hence, the disallowance at Rs. 55,27,111/-. The CIT(A) upheld the same, against which the assessee is in appeal before us. 8. We have heard rival contentions and perused the material available on record. The details of the expenditure disallowed by the authorities below is as under:- Sl. No. Dated Item/Name Amount (Rs.) 1. 18-May-11 Installation Charges 3,03,325 2. 17-Jun-11 Installation Charges 55,150 3. 02.08.2011 Supply and installation of Boiler Tubes 6,27,932 4. 14.03.2012 Electrical Work 1,55,040 5. 28.03.2012 Electrical Work 24,19,456 6. 07-Jun-11 Teak Wood chair 10,68,750 7. 07-Jun-11 New Toughed Glass entrance Door 2,51,064 8. 07-Jun-11 Entrance door 2,51,064 9. 12.02.2012 Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors of the unit of the assessee and was revenue in nature. 11. The Ld DR for the Revenue strongly objected to the submission of the assessee. 12. In the totality of the facts and circumstances of the case, we are of the view that the expenditure incurred by the assessee for smooth running of its business is to be allowed as revenue expenditure. Further, by incurring the expenditure, no new asset had come into existence and hence, there is no merit in making the aforesaid disallowance in the hands of the assessee except the expenditure of Rs. 10,68,750/-. Accordingly, we allow the expenditure as revenue expenditure in the hands of the assessee and direct the Assessing Officer to capitalize the expenditure of Rs. 10,68,750/- and allow depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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