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2014 (12) TMI 211 - AT - Income TaxForeign tour expenses disallowed Nexus between foreign expenses with the business carried out by the assesse Held that:- CIT(A) rightly considered that while adjudicating the issue, the AO has stated that the travelling payments incurred and claimed also included the expenses incurred towards the foreign tour of the Director Saleem Bakshi, in support of which, the assessee company had also filed a copy of bill dated 06.06.2008 the dealer was required to bear the cost of travelling to and from Beijing, China, and the other expenses were being borne by the Company for their stay at Beijing from 13th June, 2008 to 16th June, 2008, in respect of their boarding, lodging, and local travelling, etc. - it was obligatory on the Director to go and attend the conference, and the tour was having no personal element - In support, the copy of bill dated 06.06.2008 was also filed along with the copy of cash memo dated 11.06.2008, towards the payment of to and fro expenses from Delhi to China and for having the currency also, from which, it was wrongly inferred by the Assessing Officer, that the Director had gone to Thailand on his personal tour, without appreciating, that the Director had gone to China by Thai Airways, as appeared in the Travelling bill - since only a part of the claim made by the assessee has been allowed, it is obvious that the AO himself did not dispute the nature of the expenditure as a business expenditure the order of the CIT(A) is upheld Decided against revenue. Classification of repairs and maintenance Capital in nature or not Held that:- The premises whereat the repairs and maintenance were carried out, was a rented premises - Tiles, adhesive and other raw-material were purchased for improvement and beautification of the premises - this expense did not amount to capital expenditure, just because the bills were raised for renovation - The repairs were found to have been carried out as a business necessity of the assessee - whenever the assessee incurs expenditure for repair and maintenance of a building taken on lease for carrying on its business activity, it has to be allowed u/s 30(a)(i) - CIT(A) correctly noted that it was only for the year under consideration, that a sum had been disallowed out of the total expenditure incurred and claimed of ₹ 22,55,710/-, wrongly presuming it to be expenditure capital in nature, without going through the records, and that the premises owned were all leased out premises and not owned by the assessee company the order of the CIT(A) is upheld Decided against revenue.
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