Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 705 - AT - Income TaxPenalty u/s 271(1)(c) – disallowances, i.e., qua repair and maintenance and depreciation - Held that:- The building is in the process of completion, work for which has been contracted and, in any case, was in progress - The construction or the acquisition of an asset cannot be said to be complete prior to it attaining a working condition, which has to be reckoned with reference to its intended user, as for the purpose of guest house - It is not the case, as has been sought to be projected by the assesse, that the Revenue has not accepted its claims in the absence of actual user, even though the building is ready for use, so that it is a case of passive user - Why, the detail of the expenditure itself reveals a good part of the expenditure to be on furniture and which has also been factored into in arriving at our foregoing inferential finding of the building being readied for its intended user, as admitted in the quantum proceedings. It would be fit and proper to remit the matter with respect to the claim qua Bhiwandi property back to the file of the ld. CIT(A), to allow the assessee an opportunity to substantiate its case in respect of cost incurred toward the Greenhouse, if any, included therein, as well as of the same as not representing a capital expenditure - For the balance expenditure qua the Bhiwandi property, we confirm the levy of penalty u/s. 271(1)(c), save qua expenditure for which it has a plausible explanation; the assessee having completely failed to explain the same as representing repair and maintenance of building; rather, its explanation having been found as contrary to facts as well as inconsistent with the material on record - Its claim for depreciation on the Bhiwandi building would also follow suit inasmuch as there has been no explanation, much less its substantiation, as to the user of the Bhiwandi property or even of its being ready for its intended user – Decided partly in favour of Assessee.
|