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2015 (5) TMI 1059 - AT - Income TaxAllowable business expenditure - payments made to Hotels, Spa and purchase of apparels - Held that:- Admittedly, payments were made through credit card to Hotels/Resorts, Disney Vacancy purchase, apparels, Departmental stores, Spa, etc. These expenses were personal in nature. There is no material on record to show how these payments are going to promote the business of the assessee. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the addition to the extent of ₹ 4,73,345/-. Disallowance of foreign travel expenses - Held that:- The assessee claimed expenditure relating to foreign travel. The assessee could not file any details. However, the bills and vouchers to the extent of ₹ 8,24,256/- were filed. In respect of the balance expenditure, no material was filed by the assessee. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the addition to the extent of ₹ 13,90,60/- on account of foreign travel. We do not find any infirmity in the order of the CIT(Appeals). Accordingly, the same is confirmed. Disallowance towards repairs and renewals - Held that:- The assessee claims that a sum of ₹ 25,88,711/- was incurred in repairs and renewals of compound wall, relaying of connecting roads and construction of temporary dining hall for the workers. If it is a construction of new wall and new roads, it can be a capital expenditure, but, if it is repairs and maintenance of existing walls and roads, then definitely it is a revenue expenditure. The assessee claims that a temporary dining hall was constructed for the workers in the factory. It is not known the nature of construction made by the assessee. When the assessee claims that these are all revenue expenditure, the Assessing Officer estimated 60% of the same as capital expenditure. The details with regard to the nature of construction of the dining hall are not available on record. Therefore, we set aside the orders of the lower authorities and the issue of repairs and renewals is remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue afresh to find out whether it is a construction of new compound wall and roads. The Assessing Officer shall also reconsider the nature of temporary structure made by the assessee for dining hall. The Assessing Officer shall thereafter decide the issue in accordance with law after giving reasonable opportunity to the assessee.
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