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2014 (1) TMI 863 - AT - Income TaxDisallowance of expenses – expenses treated as being capital nature – Held that:- For expenses pertaining to Tennis hard court to tennis Clay Court, Dholpur planter for banquets these are not brining any enduring benefit or enhancement of capacity of hotel in any manner - the assessee is operating five star hotels, these expenses have been made to meet the requirement of efficiency and good service to the guests by a star hotel which do not bring any enduring benefit or enhancement of capacity in any manner to the assessee - Expenditure related to automatic door, installation of Milnor, water exterior, mobile radio and DVD players, these expenses also need to be tested in the light of the fact that these expenditures have been made by the assessee to maintain harmony and efficiency in the service of guest. The additions made are revenue in nature because these expenditures are not bringing any enduring benefit or enhancement of earning capacity of the assessee- The authorities below ignored a basic fact that the assessee is operating Five Star Hotel and it is bound to maintain good ambience and dignity of the hotel and to enable to the system which could provide efficiency and hassle free services to the guests of the hotel – thus, the expenses are revenue in nature – Decided in favour of Assessee. Disallowance on account of donation made – Deduction u/s 80G of the Axt – Held that:- No documentary evidence was produced before the authorities below to substantiate the claim u/s 80G of the Act pertaining to donation made by the assessee – thus, the order of the CIT(A) sustained - Decided against Assessee.
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