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2020 (5) TMI 595 - AT - Income TaxAddition on renovation expenses on lease hold property - Non deduction of TDS - CIT (A) has confirmed the disallowance holding it to be non genuine - Alternatively, the Ld. CIT (A) has stated the repair and renovation expenses are not allowable since TDS was not deducted - HELD THAT:- It is an undisputed fact that the assessee carried out repair and renovation expenses on a lease property which was taken on lease and any such repair and maintenance of lease property cannot be held to be giving any enduring benefit to the assessee, firstly for the reason that leased premises is for temporary period and nature of expenses are purely in nature of repairs. In fact such kind of repairs and renovation expenses on leased premises has been held as revenue expenditure by the various courts as relied upon by the ld. counsel. Accordingly, hold that expenditure incurred by the assessee is allowable and the additions made by the AO are deleted. Such an addition or disallowance cannot be made u/s 40(a)(ia), because the major expenses relates to purchase of material and labour payments are for petty amounts, on which TDS liability is not attracted. - Decided in favour of assessee.
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