TMI Blog2010 (6) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... wing grounds:- (1) The ld. CIT(A)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance of ₹ 6,21,172/- made by the AO on account of garden expenses. (2) The ld. CIT(A)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance of ₹ 5,57,335/- made by the AO on account of filtration expenses. 2. Thus there are two issues involved -one is dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) in Asst. Year 2004-05 and 2005-06 and, therefore the issue is settled in favour of the assessee. Even otherwise according to the ld. AR the expenditure incurred on maintenance of garden is revenue expenditure. He relied on the decisions of Hon. Bombay High Court in Zenith Steel Pipes Ltd. vs. CIT (1990) 185 ITR 126 (Bom) and Teksons (P) Ltd. vs. CIT (1979) 120 ITR 745 (Bom). 5. On the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure for the welfare of the employees would be revenue expenditure. Expenditure incurred for maintenance of garden is primarily for healthy and soothing environment. Even though it adds value to the factory building but for that reason alone expenditure so incurred cannot be considered as capital and be disallowed. It can be said that such expenditure on maintenance of garden is incurred who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meant for capital goods, the AO held that expenditure so incurred is capital in nature. He accordingly disallowed the claim under section 37 but allowed the depreciation thereon @ 15%. This resulted in an addition of ₹ 5,57,335/-. The ld. CIT(A) on the other hand, allowed the claim of the assessee on the ground that - (i) book entry will not ultimately decide the basic character of expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sset or any enduring benefit to the assessee. Their maintenance expenditure would fall under the head current repairs. Accordingly we do not find any merit in the appeal filed by the Revenue and hence the same is dismissed. The appeal of the Revenue is accordingly dismissed. 9. In the result, the appeal filed by the Revenue is dismissed. Order was pronounced in open Court on 11/6/2010 - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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