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2018 (3) TMI 1570 - AT - Income TaxDisallowance of repair and maintenance expenditure - Held that:- When expenditure claimed by the assessee company on account of repair and maintenance disallowed on account of non-producing the vendors are held to be existed but CIT (A) has restricted the disallowance to 5% on the basis of doubt only and no addition can be made on the basis of suspicion. Disallowance of 5% made by the CIT (A) on the ground that still some doubt are there qua the existence of vendors is not sustainable in the eyes of law and hence ordered to be deleted. Disallowance of repair and maintenance expenditure paid to Chandra Singh Contractor and National Sanitation - revenue or capital expenditure - Held that:- CIT (A) has erred in confirming the disallowance of repair and maintenance expenditure paid to Chandra Singh Contractor and National Sanitation for AYs 2003-04 and 2005-06 as the expenditure are liable to be treated as revenue in nature as keeping the hotel rooms, floors, ceilings and its ambience in good condition would certainly lead to the increase of the revenue of hotel and it will also enhance its sale-ability and cannot be treated as capital expenditure of enduring nature. - Decided in favour of assessee No illegality or perversity in the deletion of the disallowance made by the CIT (A) by treating the same as expenditure incurred wholly and exclusively for the purpose of business on account of directors foreign travelling expenditure.
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