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2014 (11) TMI 3 - AT - Income TaxEnhancement of disallowance of repairs and maintenance of non-factory building – Held that:- There was a substantial damage to the non-factory building i.e. godowns of the assessee which were constructed during earlier financial years and assessee had to incur substantial amount for repair and maintenance of roof of these godowns - Neither the AO nor the CIT(A) have doubted the quantum of the expenditure so incurred by the assessee and the authorities below have also not considered the fact that the assessee adjusted the amount of claim which was received from the insurance company as compensation for the damages caused due to storm - the explanation, details, bills and vouchers of the assessee and adjustment of insurance claim require examination and verification at the end of the AO for proper quantification of the revenue expenditure on the basis of relevant principles for allowability of the claim of the assessee – thus, the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of assessee. Amount added back out of interest account payable to Haryana Govt. u/s 43(B) – Held that:- The CIT(A) has noted that the assessee’s case apparently does not fall under any of the clauses mentioned u/s 43B of the Act which is not a proper and judicious approach - the authorities below have not adjudicated the issue as per letter and spirit of the provisions of section 43B of the Act - The AO ought to have verified and examined the claim of the assessee mainly on two counts, i.e. whether the claimed sum was actually paid and the amount was actually paid by the assessee on or before the due date applicable in its case for furnishing the return u/s 139(1) of the Act – thus, the matter is to be remitted back to the AO for proper verification and examination of claim of the assessee as per section 43B – Decided in favour of assessee. Payment of auditors fees – Held that:- The auditor’s fees is a necessary business expenditure which is allowable u/s 37(1) of the Act and additions made in this regard are not sustainable – the AO is directed to allow the expenditure incurred by the assessee towards payment of auditors fees – Decided in favour of assessee.
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