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2013 (3) TMI 121 - AT - Income TaxExpenditure on furniture and fixture - current repairs - capital or revenue in nature - assessee has to create and maintain the cabins to be given on rent to tenants as business centre. - held that:- The A.O. has basically gone on the presumption that the amount incurred being huge is capital in nature and is not current repair and in the previous year such expenses have even capitalised by the assessee. We find the ld. CIT(A) while allowing the claim of the assessee merely relied on the arguments of the assessee that the incurrence of the expenses and the genuineness of payments to various parties are not doubted. According to the ld. CIT(A) the property belongs to MMTC and the assessee has to make some changes in the existing furniture as per the need of the tenant and no new asset has come into existence. - matter remanded back for fresh consideration. Uniform expenses - A.O. doubted the requirement of so many pieces of safari suits. According to him the bills dtd. 2.3.2005 & 21.03.2005 appear to have been prepared on one date at the fag end of the year so as to inflate the expenses. Further the assessee has also failed to deduct the TDS from such payments as stitching charges come under works contract. - held that:- The various staff in the business centre are usually provided with uniform. Merely because the stitching charges are more than the cost of the cloths, the same, in our opinion, cannot be a ground for disallowing the expenditure. - Decided in favor of assessee.
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