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2013 (9) TMI 633 - AT - Income TaxRepairs and renovation work in the leased property to be treated as revenue expenditure of capital expenditure – Held that:- Repairs conducted on tenanted/leased property and is purely in the nature of business expenditure - Assessee had undertaken repairs and renovation work in the leased property, meant to be for the purpose to showcase the products under the “Brand TATA” - Time has come that there has to be a proper display and single roof display of one’s own products shall boost the business, if the business is multi product – Relying upon the decision in the case of Lakshmi Sugar Mills Co. (P) Ltd. v/s CIT reported in [1971 (8) TMI 13 - SUPREME Court], it is held that the expenditure of renovation is revenue in nature – Decided in favor of Assessee. Disallowance on account of system software development expenses – Held that:- Relying upon the judgment Hon’ble Jurisdictional High Court of Bombay in the case of CIT Vs Raychem RPG Ltd., Mumbai [2011 (7) TMI 953 - Bombay High Court], it has been held that expenses are revenue in nature and hence deleted the addition made by revenue authorities. Forfeiture of deposit to be treated as revenue loss, allowable for deduction or capital loss not allowed in the profit & loss account - AEPC had forfeited its Earnest Money Deposit – Held that:- Reliance has been placed on the order of the co-ordinate Bench of Delhi ITAT in the case of Pyoginam vs. ACIT, reported in [2010 (2) TMI 819 - ITAT, Delhi], wherein it has been held that amount on account of non-fulfillment of quota cannot be treated as penalty - Assessee got quota allotted on the basis of past performance of export business and not on the basis of the earnest money deposited. The earnest money was paid on percentage basis of quota allotted. Therefore, the payment of earnest money was in the course of business activities and hence, cannot be treated as capital in nature. - Decided in favor of assessee.
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