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2019 (3) TMI 633 - AT - Income TaxExpenditure incurred as repairs - Deduction while computing income from business under the head ‘current repairs’ - assessee had carried out major replacement and by doing so had derived an enduring benefit and the expenditure was capital in nature - whether an expenditure is revenue or capital? - HELD THAT:- What would constitute the repairs as ‘current repairs’ and whether replacement of parts of a machine can be said to be current repairs are questions which will depend on facts and circumstances of each case. We have already set out the nature and description of the item that was used on SMG Feintool Germany. Similarly for other items of machinery, the description is contained in assessee’s PB. Without a reference to the nature of expenses, it is not possible to decide the question whether the expenditure in question is current repairs or capital expenditure or revenue expenditure. In our view, it will be just and proper to set aside the order of revenue authorities on this issue and remand the question for fresh consideration by the AO in the light of principles laid down in the case of Super Spinning Mills [2013 (9) TMI 88 - MADRAS HIGH COURT] in the decision cited supra. AO will afford opportunity of being heard to the assessee, before deciding the issue. The relevant grounds of appeal are decided accordingly. TDS u/s 194C - payment to transporters - benefit of section 194C(6) / 194C(7) - payment in question was a payment for carrying out of works for which assessee ought to have deducted tax at source on such payment - addition u/s. 40(a)(ia) - HELD THAT:- We find that identical issue had come up for consideration before the Calcutta Bench of the Tribunal in the case of Soma Rani Ghosh v. DCIT [2016 (10) TMI 55 - ITAT KOLKATA] as held authorities below are not justified in treating the expense incurred by the assessee for Carriage inward and carriage outward as disallowable under section 40(a)(ia) of the Act, and adding back claimed expense towards Carriage Inward and expense towards Carriage Outward, and such additions shall stand deleted. - Decided in favour of assessee.
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