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2017 (3) TMI 330 - AT - Income TaxAddition u/s 68 - non admitting additional evidence with respect to investment in share capital by Cavere Trading Private Limited - Held that:- CIT(A) did not consider the confirmation in respect of the Cavere Trading Pvt. Ltd. on the ground that why the same was not filed before the Assessing Officer but we are of the view that by not considering the said documents, the prejudice would be caused to the assessee if an opportunity of being heard was not granted. Moreover, these documents are relevant and are necessary for the adjudication of the matter of controversy in the interest of justice, therefore, we set aside the finding of the CIT(A) in this regard and direct the Assessing Officer to decide the matter afresh by giving an opportunity of being heard to the assessee by considering the relevant documents produced by the assessee in connection with the Cavere Trading Pvt. Ltd. in accordance with law. Accordingly this issue is being decided in favour of assessee. Disallowance of office renovation expenses - Held that:- The company has incurred one time renovation expenses like civil work, electrification etc for setting up the network of the branches which has been included in repair and maintenance expenses shown under the group `Office and other expenses' . It is not in dispute that the said expenditure was incurred in respect of running of office premises. Anyhow, it is to be seen whether such type of expenditure is required to be treated as capital expenditure or revenue expenditure. In this regard the law relied by the representative of the assessee speaks that the repair and renovation of leased business premises is liable to be considered as revenue expenditure. In view of the above mentioned law i.e. Thiru Arooran Sugars Ltd. Vs. DCIT (2013 (2) TMI 450 - Madras High Court )we are of the view that the expenditure to the tune of ₹ 23,66,226/- is revenue in nature which is allowable in accordance with law. - Decided in favour of assessee. Disallowance of residential renovation expenses - Held that:- The Assessing Officer declined the same on the ground that no business connection was established in connection with Directors. No evidence of any kind was found, however, nothing new was produced before CIT(A). After filing the appeal before us no new material has been produced before us. Any how alternative ground is quite reasonable, therefore, depreciation in accordance with law is liable to be allowed on the amount expended for the renovation of residential. Accordingly, these issues are decided in favour of the assessee against the revenue.
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