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2016 (9) TMI 1145 - AT - Income TaxAllowability of expenditure incurred to renovation of expenses - revenue v/s capital expenditure - Held that:- We find that ld.CIT(A) while deciding the issue in favour of assessee has noted that the expenditure incurred was to make tenanted premises more suitable and conducive to business activity and by incurring the expenditure no new asset has been brought into existence. He has also given finding that the expenditure incurred also included expenditure by way of replacement /repairing of old existing furniture and fixtures and modification made to facilitate the display of changed models of products of companies whose goods are sold by assessee. - Decided against revenue Addition on account of notional interest on furniture deposits - Held that:- We find that the ld.CIT(A) while deciding the issue has given a finding that the deposits have been given for the purpose of business and further it was for use of existing furniture for which assessee was not paying any rent. We also find that identical issue arose in assessee’s own case for AY 2008-09 in favour of assessee as noted that the furniture deposit was old amount given to Sales India and M/s.Santosh Trading for using the existing furniture of these concerns without payment of rent. He has further noted that the deposits have been given for the purpose of business and there was no justification of disallowing the notional interest - Decided against revenue Addition u/s 40A - Held that:- The assessing officer has not properly appreciated the facts and considering the factual aspect of the payment and the fact that no such disallowance was made in the earlier years except in AY 1990-91 which was also deleted and applying the principle of consistency to the similar facts the addition u/s.40A(2)(b) is directed to be deleted and this ground of appeal is allowed in favour of assessee Disallowance of delayed payment of employees’ contribution of ESIC - delayed payment - Held that:- The employees’ contribution of ESIC has not being paid before the due dates and in the absence of any contrary binding decision in favour of assessee, we respectfully following the decision of Hon'ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT ) we set aside the order of ld. CIT(A) on this issue and uphold the decision of A.O. - Decided against assessee
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