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2015 (12) TMI 614 - ITAT AHMEDABADDisallowance of machinery repair expenses - CIT(A) deleted the addition - Held that:- There is no rebuttal to the CIT(A)’s findings about kerosene, diesel oil expenses. And also that each head is of less than ₹ 25,000/- except in one case. Revenue fails to single out a case wherein any repair item gives enduring advantage or increases machine capacity. It quotes case law of Mahalaxmi Textile [1967 (5) TMI 4 - SUPREME Court ] and Ballimal Navalkishor (1997 (1) TMI 3 - SUPREME Court) in support. We find the former judicial verdict upheld the tribunal’s reference made to the concerned high court as the nature of expenditure involved. The latter precedent holds that when purpose of the repair in question is of preserving or maintaining already existing asset, it would amount to corrent repair only. There is no such ratio propounded that as and when a repair exceeds 20% of the WDV, the same would need to be capitalized. The Revenue fails to justify the Assessing Officer’s view abovesaid. - Decided against revenue Bad debts disallowance - CIT(A) deleted the addition - Held that:- The case file reveals that the assessee maintained two accounts under the heads security ledger deposits and a running one. Its former sum of security deposits could not be recovered despite exercising all civil and penal remedies (supra). The same proves non-recoverability thereof. The lower appellate authority also allows it as a business loss by following tribunal’s order (supra). The Revenue fails to point out any distinction on facts or quote any case law to the contrary. We affirm the CIT(A)’s argument in these circumstances - Decided against revenue
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