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2013 (7) TMI 221 - ITAT MUMBAISlum Rehabilitation Authority charges - revenue v/s capital - Held that:- CIT(A) after proper application of mind has bifurcated the SRA expenses into two categories i.e. one which are in the nature of capital expenses and the other which are in the nature of revenue expenses treating the deposits i.e. Maintenance deposit of Rs. 7,36,700/- and Maintenance Deposit of Rs. 1,12,000/- as capital expenses, however rest of the expenses have been treated as revenue expenses being incurred on account of development charges, interest on development charges and infrastructure charges being incurred by the assesee for getting the income of Rs. 77,50,080/- towards the sale of TDR. No infirmity relating to the finding of the CIT(A) which has been made after proper application of mind. Disallowance of expenses on building materials - CIT(A) deleted disallowance of Rs. 3,50,370/- out of total disallowance of Rs. 6,38,756/- - Held that:- CIT(A) separately dealt with each type of expenses in view of the evidence and explanation furnished before him by the appellant and also taking into consideration the remand report of the Assessing Officer. There were certain expenses incurred by the Assessee, even after completion of the project which were claimed by the Assessee. The disallowance pertaining to the expenses which were supported with bills etc. has rightly been deleted by the CIT(A) whereas the disallowance of expenses which were not supported with proper bills have rightly been sustained by the CIT(A). The finding of the CIT(A) on this issue is hereby upheld. Disallowance of maintenance, telephone, vehicle etc. - CIT(A) sustained part disallowance - Held that:- CIT(A) has held that the disallowance of 20% made by A.O. was right and also sustained the said addition made by the A.O. towards Vehicle expenses as well as telephone expenses, however he has deleting the disallowance made by the A.O. under the head 'Repair and Maintenance'. The revenue has not contested the deletion of the disallowance under the head 'Repair & Maintenance' rather revenue has appealed against the deletion of 20% depreciation on motor car expenses which in fact has not been deleted by the CIT(A), rather has been sustained. Appeal of revenue dismissed.
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