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2011 (1) TMI 1242 - AT - Income TaxDisallowance of expenses Expenses incurred on interior decoration, extension and renovation of various buildings on lease Held that:- The expenditures are on the interior decorations and creation of the office atmosphere - The expenditure has not resulted in any building coming into existence nor has the existing building been modified or the structure altered - As the existing building has not been altered and there is no change to its structure as a result of the expenditure incurred by the assessee, it cannot be said that the expenditure incurred by the assessee is in the capital field - the expenditure on the repairs and maintenance in the form of electrical fittings, electrification, cabinet, work station, partition, cupboard, stand etc. are liable to be treated as a revenue expenditure Order of the CIT(A) reversed also the depreciation as allowed by the Assessing Officer on the said expenditure which has been capitalized would stand reversed Decided in favour of Assessee. Enhancement of disallowance made u/s 14A of the Act r.w Rule 8D of the Rule Held that:- The decision in GODREJ AND BOYCE MFG. CO. LTD. Versus DEPUTY COMMISSIONER OF INCOME-TAX AND ANOTHER [ 2010 (8) TMI 77 - BOMBAY HIGH COURT] followed - no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to such income which does not form part of the total income under the Act, by virtue of the provisions of Section 14A(1) - the issue of enhancement has not been challenged by the assessee - the issue of disallowance by application of sec. 14A is restored to the file of the Assessing Officer for re-adjudication. Deletion made for prior paid expenses Computation of book profits u/s 115JB of the Act Held that:- The decision in CIT v. Khaitan Chemicals And Fertilizers Ltd [2008 (9) TMI 89 - DELHI HIGH COURT] followed - the net profit (as referred to in Section 115 JA) of the assessee company is to be computed only after deducting the expenses on prior period / extraordinary items which are business expenditure the expenses which have been disclosed as for prior period items/extra-ordinary items are part of the profit & loss account and properly deductible in computing the book profits the order of the CIT(A) upheld Decided against Revenue. LTA treated as benefit granted to employees Liability to pay Fringe benefit tax Held that:- The LTA is treated as a perquisite and part of the salary and TDS has also been deducted therefrom, in view of the circular issued by the CBDT the same is not liable for the Fringe Benefit Tax order of the CIT(A) set aside Decided in favour of Assessee.
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