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2014 (7) TMI 837 - AT - Income TaxExpenses on purchase on new items - Acquisition of new assets for replacement of existing assets as current repairs - Held that:- AO has mentioned various items and no doubt the wooden paneling, wooden partition, some small items of steel or purchase of cement etc. may fall under repair but at the same time purchase of almirah in AY 2008-09 amounting to ₹ 102600/-, installation of board etc. cannot be termed as repair and maintenance - the assessee has shown purchase of Orissa type W.C along with G.I. Flush bend, C.I Pee Trap etc. which shows construction of new bath room. The Ld. Counsel for the assessee could not give any answer in respect of these items - At the same time there is no purpose if the issue is set aside - if 10% of items listed by the AO are held to be of capital nature – Decided partly in favor of Revenue. Disallowance u/s 14A r.w. Rule 8D – Held that:- In earlier years before AY 2008-09 Rule 8D was not applicable – Relying upon Godrej & Boyce Manufacturing Vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] - Rule 8D has no retrospective application and is applicable only from Assessment year 2008-09 - it cannot be said that no expenditure is required to be incurred for making investments and receiving dividends - All the activities require involvement of various management and finance personnel which involves expenditure - Rule 8D has been rightly invoked by the AO – Decided partly in favour of Assessee.
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