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2011 (8) TMI 258 - AT - Income TaxAddition - under section 41(1) of the Act - There is no dispute that the assessee has shown the sundry creditors in its balance-sheet amounting to Rs. 25,60,09,090 including the liability of Apex body pending for more than 5 years Rs. 10,85,531 supported by the relevant details thereof. Out of it, the Assessing Officer has added Rs. 10,85,531 on the ground that the said liability is pending for more than 5 years, therefore, the same is ceased to exists and hence chargeable to tax under section 41(1) of the Act - Held that:- CIT (A) deleted the same on the ground that the same is not barred by Limitation Act and there is no proof that the appellant obtained any benefit in respect of these creditors, the liability has not been written back by the appellant, there is no remission of liability, therefore, following the decision of the Hon'ble Supreme Court in the case of CIT v. Sugauli Sugar Works (P.) Ltd. (1999 -TMI - 5715 - SUPREME Court) he deleted the addition of Rs. 10,00,000 - order of CIT(A) upheld - Decided in favour of assessee. Current Repair expenditures - capital expenditure or revenue expenditure - Held that: - assessee on the tenanted office building which is more than 60 years old, has incurred repairs to preserve and maintain an already existing assets and there is no material on record to show that by incurring such expenditure the new assets has come into existence or the assessee has obtained a new advantage. - in view of decision of Supreme court in CIT v. Saravana Spg. Mills (P.) Ltd. (2007 -TMI - 1775 - SUPREME COURT OF INDIA) - the question as to whether the expenditure incurred by the assessee conceptually is revenue or capital in nature is not relevant for deciding the question whether such expenditure comes within the etymological meaning of the expression "current repairs". In other words, even if the expenditure is revenue in nature, it may not fall in the connotation of "current repairs. - Decided in favor of assessee.
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