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2018 (1) TMI 936 - AT - Income TaxSection 41(1) addition of cessation of liability - Held that:- There is not dispute that the AO had invoked Section 41(1) of the Act on the ground that the relevant limitation period expired much earlier than the impugned assessment year. It has come on record that hon’ble jurisdictional high court’s judgment in case of Bhogilal Ramjibhai Atara (2014 (2) TMI 794 - GUJARAT HIGH COURT) has held in identical circumstances that the said sole reason does not ipso facto attract Section 41(1). We therefore see no reason to concur with learned Departmental Representative’s vehement contention in seeking to revive the impugned addition. The Revenue’s first substantive ground fails accordingly. Allowance of factory repairing expenses - revenue or capital expenses - Held that:- We find that the Assessing Officer had invoked Section 30 explanation to disallow the impugned expenditure after concluding that the relevant repairs involving plastering, flooring, structuring etc. amounted to capital expenditure. Learned Departmental Representative fails to dispute that the CIT(A) has followed his identical finding in said earlier assessment year concluding that the impugned expenditure is in the nature of routine wear and tear associated with use of old factory building. We therefore adopt consistency in the impugned assessment year as well to confirm the CIT(A)’s findings under challenge qua this second issue. Unutilized CENVAT credit addition u/s 145A - Held that:- CIT(A) has followed his findings in assessment year 2010-11 deleting an identical addition on the ground that it is mainly revenue neutral case stating that unutilized CENVAT credit cannot be subject matter of addition under Section 145A of the Act being tax neutral.
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