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2011 (1) TMI 426 - HC - Income TaxDeleting the Addition - Capital or Revenue Expenses - Repair and maintenance expenses - the CIT (A) deleted the said addition - The Tribunal upheld the view of the CIT(A) while observing that the said expenditure was in the nature of current repairs, deductible under Section 30 of the Act - Held that the impugned expenditure was deductible in computing the income. Staff Welfare Expenses - the assessee distributed VIP bags, mixer, blenders, watches etc. to staff. It also purchased dry fruits during Christmas period. The assessee also purchased 264 pairs of shoes for its staff members - These expenses were for the welfare of employees and, therefore, the expenses were deductible as such - Therefore, it is held that the impugned expenditure was deductible in computing the income. Personal use of the car and telephone expenses: The CIT (A) deleted both the additions - The Tribunal upheld the view of the CIT(A) by holding that the said expenditure was relatable to be taken as business expenditure in view of the decision of Gujarat High Court reported in Sauyaji Iron & Engineering Company v. Commissioner of Income Tax. Foreign travelling expenses - The CIT(A) deleted the addition - The Tribunal while upholding the view of the CIT (A) observed that the continuous training was essential for the functioning of the company and such expenditure was deductible in computing the income.
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