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2016 (5) TMI 1416 - AT - Income TaxDisallowance of proportionate interest and indirect expenditure u/s. 14A - Held that:- Considering the facts and circumstances of the case and also respectfully following the coordinate bench decision in assessee's own case for the earlier period, we are of the opinion that the CIT(A) has rightly deleted the additions made towards proportionate interest and upheld the additions made towards indirect expenditure. We do not see any error or infirmity in the order passed by the CIT(A). Hence, we inclined to uphold the order passed by the CIT(A) and reject the ground raised by the assessee as well as revenue. Disallowance of expenditure under the head repairs and maintenance - Held that:- A.O. was right in disallowing certain expenditure under the head repairs and maintenance as capital expenditure by depending upon the functions and characteristics of each item of machinery. The CIT(A) after examining the each item, had given relief to the items which are considered to be revenue in nature and upheld the action of the A.O. wherever the expenditure are in the nature of capital in nature. The CIT(A) has discussed each and every item of disallowances made by the A.O. and given his findings how a particular item is plant and machinery which constitute capital in nature or a particular item is replacement of parts of existing machinery which constitute revenue in nature. We do not see any error or infirmity in the order passed by the CIT(A). Hence, we inclined to uphold the order of the CIT(A) and reject the ground raised by the assessee as well as revenue.
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