Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 1815 - ITAT DELHIDisallowance relating to the part of the monthly lease rentals - HELD THAT:- We deem it proper to restore this issue to the file of the AO with direction to adjudicate this issue a fresh in light of the decision in case of IndusInd Bank Ltd. [2012 (3) TMI 212 - ITAT MUMBAI] and accordance with law. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Thus, Ground No. 2 and 2.1 are partly allowed for statistical purpose. Disallowing the revenue expenditure incurred on leasehold improvements - HELD THAT:- Decision of the Hon’ble Delhi High Court in the case of CIT vs. Amway India Enterprises [2011 (11) TMI 4 - DELHI HIGH COURT] held that in respect of the premises expenses which are incurred by the assessee on flooring, partition, wiring, fall ceiling, roofing, Air conditioner unit and duct, electrical wiring, laying network for setting up computer and for purchase of computer the same are in the nature of Revenue expenditure. The Hon’ble High Court has given the finding that whether an expenditure incurred is made on Revenue account or otherwise one would have to bear in mind the nature of the expenditure that is was it incurred for maintenance or preservation of an asset or was it expanded otherwise. If the expenditure was of the formal kind it would be in the nature of Revenue expenditure. In the light of the Hon’ble Delhi High Court decision it will be appropriate to remand this issue to the file of the Assessing Officer and after taking into cognizance the provisions of the Act the Assessing Officer may take a call for a proper justification.
|