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2015 (9) TMI 1296 - AT - Income TaxDisallowance of expenses out of the improvement expenses to the property - CIT(A) restricted disallowance to 50% - Held that:- The proprietor of M/s Verma Associates though appeared before the AO and accepted the fact of carrying out work however, he failed to substantiate his oral statements with documentary evidence in the form of books of account. The proprietor of M/s Vinayaka Trade and Agency who supplied the Air Conditioners, on one hand admitted to have sold the Air Conditioners to the assessee but on the other hand stated that he did not install the same. Further, the assessee has not claimed any separate expenses on installation of Air conditioners. M/s Nutech Engineering Corporation did not comply with the summon issued by the AO. On perusal of the Bill of M/s M/s Nutech Engineering Corporation which is filed at page no. 104 of paper book of the assesee, it is seen that 250 number of plastic moulded furniture items have been supplied but exact nature of item is not mentioned. Further the registered sale agreement though contains the clause that sale price of the said property include the cost and expenses for fitting and all other facilities provided in the said property, however, there is no specific mention that plastic moulded furniture was part of any fittings. Moreover, the buyer has specifically denied to receive any Air Conditioner or fittings. In view of the above findings, the action of the CIT(A) in restricting the disallowance to 50% of its improvement expenses does not seem proper. In view of the above, in the interest of natural justice,find it appropriate to send the matter back to the file of the Ld. CIT(A) to examine the issue alongwith expenses on repair, air conditioned plastic moulded further after giving due opportunity to the assessee. I hold and direct accordingly. - Decided in favour of assessee for statistical purposes.
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