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2013 (4) TMI 63 - AT - Income Tax


Issues involved:
1. Disallowance of repair and maintenance expenses
2. Non-allowance of credit of TDS amount

Analysis:

Issue 1: Disallowance of repair and maintenance expenses
The appeal arose from the CIT(A)'s order for the assessment year 2004-05, where the assessee contested the addition of Rs.60,000 as repair and maintenance expenses. The ITAT, Amritsar Bench had previously set aside the issues to the CIT(A) for reconsideration. The CIT(A) confirmed the disallowance of Rs.60,000 citing lack of evidence and also upheld the non-disallowance of credit of TDS amounting to Rs.55,510. The assessee argued that the expenses were incurred by a sister concern with common premises, and all details were available. The expenses were for small items like nuts, bolts, gear, etc., which were not separately billed to the assessee. The ITAT found the arguments convincing, noting that the machinery was part of the balance sheet assets, and directed the AO to allow the claim, reversing the CIT(A)'s decision on the issue.

Issue 2: Non-allowance of credit of TDS amount
Regarding the TDS claim of Rs.55,510, it was acknowledged that it pertained to the preceding year. The assessee's counsel argued to allow the claim for the relevant assessment year. The ITAT agreed that the TDS claim should be allowed in the year to which it pertains, i.e., assessment year 2003-04. The matter was remanded to the AO to decide the issue accordingly. The ITAT held that since the income was not credited during the impugned year, the TDS claim could not be allowed in the current year. Therefore, the grounds related to TDS were allowed, and the appeal was partly allowed for statistical purposes.

In conclusion, the ITAT ruled in favor of the assessee on both issues, directing the AO to allow the repair and maintenance expenses claim and to address the TDS claim for the relevant assessment year. Grounds 5 and 6 were deemed general and did not require further adjudication.

 

 

 

 

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