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TMI Blog2024 (12) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been made by the A.O. which can be corroborated by the Assessment Orders for Assessment Year 2010-11 to 2012-13 which were passed u/s 143(3) of the Act. By following the Rule of consistency as reiterated in the case of M/s Excel Industries Ltd. [ 2013 (10) TMI 324 - SUPREME COURT] and M/s Radhasoami Satsang [ 1991 (11) TMI 2 - SUPREME COURT] and finding merit in the contention of the Ld. Assessee's Representative, disallowance made by the A.O. u/s 36(1) (iii) deleted. - Decided in favour of assessee. Disallowance under the head of repair and Maintenance - HELD THAT:- By respectfully following the order of the Tribunal for Assessment Year 2012-13 in Assessee s own case [ 2019 (10) TMI 1600 - ITAT DELHI] and considering the nature of the business of the Assessee which involve preservation and maintenance of already existing assets and also considering the fact that such expenditures have been allowed for Assessment Year 2012-13, 2001-02 and 1997-98, we find no reason to sustain the disallowance made by the Ld. CIT(A). - Decided in favour of assessee. - Shri Shamim Yahya, Accountant Member And Shri Yogesh Kumar U.S., Judicial Member For the Appellant : Sh. Satish Khosla, Adv, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act that under rule 8D of the I.T. Rules, 1962, the disallowance is not to be restricted to the extent of exempt income. 2. Whether on the facts and circumstances of the case, the Ld. CIT (A) was right in law in deleting of Rs. 6,11,552/- made on account of expenditure for repair maintenance by ignoring the facts that these expenses have been made to earn enduring benefits, thus the same should be treated as capital expense. 3. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal. Disallowance u/s 14A of the Income Tax Act, 1961 ( Act for short). 3. The Grounds of Appeal No. 1(a) and 1(b) of the Assessee s Appeal for Assessment Year 2013-14, 2014-15 and the Grounds of Appeal No. 1 of the Revenue for Assessment Year 2015-16 are regarding issue of disallowance made u/s 14A of the Act. 3.1. The Assessee is aggrieved by sustaining the addition by the Ld. CIT(A) for Assessment Year 2013-14, 2014-15 by restricting the disallowance u/s 14A of the Act to the exempt income. The Department is also aggrieved by the order of the Ld. CIT(A) for Assessment Year 2015-16 in deleting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing saying of Adam Smith in his seminal work - The Wealth of Nations may aptly be quoted: The tax which each individual is bound to pay ought to be certain and not arbitrary. The time of payment, the manner of payment, the quantity to be paid ought all to be clear and plain to the contributor and to every other person. Echoing what was said by the 18th century economist, it needs to be observed here that in taxation regime, there is no room for presumption and nothing can be taken to be implied. The tax an individual or a corporate is required to pay, is a matter of planning for a taxpayer and the Government should endeavour to keep it convenient and simple to achieve maximization of compliance. Just as the Government does not wish for avoidance of tax equally it is the responsibility of the regime to design a tax system for which a subject can budget and plan. If proper balance is achieved between these, unnecessary litigation can be avoided without compromising on generation of revenue. 30. In view of the forgoing discussion, the issue framed in these appeals is answered against the Revenue and in favour of the assessee. The appeals by the Assessees are accordingly allowed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Venus Portfolio Pvt. Ltd. it was replied by the Assessee that the advances were given for the purchase of a plot in Jaipur for the purpose of Hotel/Distilleries project. In the case of barter advances also the Assessee has claimed that the advances were for business purposes. The Assessee has also contended that right from the beginning when the advances were given, no additions were made by the Assessing Officer in the income returned on this account. The Addition for the first time has been made in respect of the amount outstanding against M/s Saraswati Kunj Cooperative Housing Society only in the Assessment Years under consideration. 7.3. After considering the reply of the Assessee the additions have been made by disallowing the interest which have been confirmed by the Ld. CIT(A) in the Assessment Years 2013-14, 2014-15, 2015-16 and 2016-17, which are under challenge before us. 8. The Ld. Counsel for the Assessee submitted that no disallowances have been made by the Department for Assessment Year 2010-11, 2011-12 2012-13 wherein the interest claimed by the Assessee were allowed. The Ld. Counsel for the Assessee by referring to the Assessment Orders for Assessment Year 2010-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Per contra, the Department's Representative relying on the orders of the Lower Authorities sought for the dismissal of the above Grounds of the Assessee. 14. We have heard both the parties and perused the material available on record. Similar issue regarding disallowance of expenditure claimed under the head of repair and Maintenance have been adjudicated and decided in favour of the Assessee by the Coordinate Bench of the Tribunal for Assessment Year 2012-13 in ITA No. 326/Del/2017, wherein it is held as under:- 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 depreciation on the same. Hence, Ground No.2 raised by the assessee is partl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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