Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 1117 - AT - Income TaxAddition made u/s 40(a)(ia) TDS u/s 194C - Job work or sale purchase contract - packing material and printing and statutory - Held that:- Relief with respect to packing material, printing and stationary charges have been granted to the assessee because it does not involved any job work and hence the provisions of section 194C are not applicable Decided in favor of Assessee. Addition u/s 69C of the Act - Addition on account of unexplained expenditure/investment being work in progress AO asked the assessee to furnish the party wise details of work-in-progress amounting to Rs. 1,50,19,180/- along with the proof of TDS made thereon. The assessee submitted the grouping of the amounts but did not furnish any bills, vouchers of proof of TDS as well as addresses of the party Held that:- The addition is made u/s 69C then the claim of expenditure is not a pre-condition of such addition Decided against the Assessee. Allowance as a revenue expenditure or expense as a capital expenditure Held that:- On a perusal of the break of the sum of Rs. 2,58,87,664/- it is seen that extensive work has been carried out on the structure of the factory building as well as with respect to the equipment. Executive cabins have been made, it floors related, AC sheets were installed on the top of the factory roof, the broken roof in the milk section was replaced, cables replaced, cooling tower and affluent plant revamped, angles and still rods replaced, iron rods and channels replaced in molasses tanks, installation work done in power house and milk section brass cables replaced structural repairs in mill section and boiling section and so on. Thus, exhaustive and extensive overhauling of the structure and equipment with regard to factory building and equipment have been carried out which was certainly necessitated on account of the fact that the appellant had taken over a factory that had remained closed. Current repairs - Expenditure has been incurred for replacing the broken part of the factory/plant in question and making the plant fit for use - Thus, when the expenditure has been incurred prior to the use of the plant and machinery in question then it does not fall under the category of current repairs Decided against the Assessee.
|