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2014 (6) TMI 742 - AT - Income TaxDeduction of expenses of shop renovation Current repairs Withdrawal of depreciation Held that:- No new asset has come into being on account of expenditure incurred by the assessee on replacement of old tiles, wooden partition, pest control, colouring, rolling shutter, flat glass, plywood, sanitary ware, hardware and labour charges - The business premises of the assesse were taken on lease - there is no mistake in the order of the CIT(A) in holding that the expenditure incurred by the assessee essentially were revenue in nature and not for acquisition of new asset Decided against Revenue. Deletion of computer software maintenance expenses Withdrawal of depreciation allowance Held that:- The expenditure incurred by the assessee on replacement of old software for ₹ 69,187/- and rest of the expenditure on account of annual maintenance charges - The replacement of latest version of the software does not result in creation of a new capital asset or in expansion of the capital base thus, it has to be allowed as revenue expenditure u/s 37(1) as decided in CIT(A)s order Decided against Revenue. Allowability of STCG on motor car u/s 50 of the Act Held that:- The assessee has not explained the reason that why the motor car was sold at an amount less than ₹ 84,174/- than the WDV of the car to its own director - CIT(A) has deleted the addition by observing that the motor car shown by the assessee in its balance sheet in the previous year and the department has allowed admissible depreciation in the hands of the assessee thus, the assessee could not satisfactorily explain the reason for selling the motor car to its own director at a price less than the WDV as per the record of the assessee thus, the claim of the assessee of short term capital loss on sale of motor car is restricted to ₹ 40,000/- as against the claim of ₹ 84,174/- allowed by the CIT(A) Decided partly in favour of Revenue.
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