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2021 (8) TMI 466 - AT - Income TaxNature of expenses - repair expenses - revenue or capital expenditure - assessee is engaged in the business of manufacture and sale of gold, silver and platinum jewellery and other precious metal and stones - HELD THAT:- We notice that the assessee has incurred expenses for repairing the flooring, renovating the distributors and customers display area and waste mitigation and production process systems. Admittedly, these expenses have been incurred on the building taken on lease. Though these expenses can be considered as renovation expenses, yet we notice that it has not resulted in creation of any capital asset attracting Explanation 1 to section 32. See M/S. ANUSH SHARES AND SECURITIES PVT LTD. [2015 (7) TMI 1224 - MADRAS HIGH COURT] - thus we set aside the order passed by Ld CIT(A) and direct the A.O. to delete the disallowance. Disallowance of donation made to All India Gems & Jewellery Trade Federation - AO disallowed 50% of the donation paid by the assessee, impliedly allowing the deduction u/s 80G of the Act @ 50%, also confirmed by CIT-A - HELD THAT:- The assessee has furnished copies of receipts given by the Association acknowledging receipt of ₹ 15.25 lakhs - All the receipts clearly show that the payment have been received by All India Gems & Jewellery Trade Federation towards donation. The assessee has furnished a copy of application form for participating in the PMI programme - The payment was voluntary and not under compulsion. Even otherwise, as rightly pointed out by Ld. D.R., there is no material to show that the donation was made under compulsion. On the contrary, the above said extract taken from the application form show that the donation was given to the Federation recognising the value in its bringing not only to trade but also to education and well being of the community. Hence, it is clearly proved that the donation is a general donation made by the assessee to the association/federation. We confirm the order passed by Ld. CIT(A) on this issue. Appeal filed by the assessee is partly allowed.
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