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2010 (2) TMI 741 - AT - Income TaxPurchase of fresh flowers and plants on regular basis - Revenue or capital expenditure - AO has not doubted the genuineness of the expenditure - By incurring such an expenditure no asset of enduring nature is created by the assessee and therefore, in view of the decision of Hon'ble Supreme Court in the case of Empire Jute Co. Ltd. (1980 -TMI - 5837 - SUPREME Court), the said expenditure has rightly been treated as revenue expenditure by the learned CIT(A) Regarding leave encashment - Held that: where the provision is made on the basis of scheme of leave encashment, the deduction of provision is allowable although the liability is discharged at a future date - Section 43B(f) of the act was inserted with effect from 1.4.2002 applicable for the assessment year 2002-03 whereas the present issue is for the assessment year 2001-02. - Decided in favor of assessee. Current repairs - repair and maintenance expenses on account of refurnishing and partitioning of the office premises - held that:- such expenditure on the repairs could fall under section 30(a)(i) which is an allowable expenditure. In the circumstances and facts of the case the learned CIT(A) has rightly accepted the explanation of the assessee Current repairs - repair and maintenance on account of expenditure incurred for installation on concrete interlocking blocks, mud phaska tiles, glazed doors and fixing charges - held that:- by incurring such expenditure in the rented premises the assessee has not created any new capital asset and therefore, the learned CIT(A) has rightly deleted the addition made by the AO relying upon the decision of Hon'ble Delhi High Court in the case of Instalment Supply Pvt. Ltd. (1983 -TMI - 27896 - DELHI High Court). - Decided in favor of assessee. Expenditure on foreign travel - Held that:- the visit of Ajay Muttreja is meant for the business purpose and nothing is on record to show that any expenditure for the personal purpose has been incurred - the observation of the learned CIT(A) that the assesse has not submitted various details for the visits of Shri Abhey Yograj and Neera Yograj cannot be accepted and moreover, there is nothing on record to show that these visits of the said persons are personal visits and nothing can be concluded on surmises and conjectures specially when all the details have been submitted. In the circumstances and facts of the case, the learned CIT(A) is not justified in sustaining the addition and the same is directed to be deleted. - Decided in favor of assessee.
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