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2018 (11) TMI 474 - AT - Income TaxDisallowance of renovation expenses - nature of expenses - revenue or capital expenditure - Held that:- AO accepted substantial renovation expenses incurred by assessee wholly and exclusively for the purpose of business. Thus, it was considered as Revenue expenditure. AO has not brought anything on record, as to on incurring renovation expenses what capital had been generated by the assessee. The nature of business clearly shows that renovation expenses are required to be incurred for smooth functioning of retail outlet of petrol pump. Since, turnover of assessee and GP rate have increased, therefore, there is no question of assessee inflating the expenditure so as to reduce the taxable income. The genuineness of the expenses are not in doubt. Thus hold that the entire expenses were incurred on account of Revenue expenditure - Decided in favour of assessee. TDS u/s 194C - non deduction of tds on advertisement expenses - disallowance u/s 40(a)(ia) - amount not exceeding in a year at ₹ 75,000/- - Held that:- Where the aggregate of the amounts of such sum credited or paid or likely to be credited or paid during the financial year exceeds ₹ 75,000/-, the person responsible for paying such sum referred to in sub-section (1) shall be liable to deduct Income tax under this section”. The above provision clearly shows that no deduction is required under the above provision, if the amount paid to the account of the contractor does not exceed ₹ 30,000/-. The proviso to this section provides that where the aggregate of the amounts paid exceeds ₹ 75,000/-, such person shall be responsible to deduct TDS. In the present case, the assessee has not paid more than ₹ 30,000/- on one occasion because payment below ₹ 30,000/- each was paid on different occasions. The aggregate of the amount also does not exceeds in a year at ₹ 75,000/-. Therefore, assessee is not liable to deduct TDS u/s 194C(5) - Decided in favour of assessee Addition on account of lease rent income - Held that:- The assessee is paying is lease rental of ₹ 6,600/- to M/s HPCL. Therefore, the net impact of this entry is Revenue neutral. The authorities below have failed to understand these entries. The copies of the accounts are filed at pages 38 onwards in the PB. He has submitted that on similar facts no addition have been made in earlier year and subsequent year. In view of the above and considering the copy of the account of the assessee in the books of HPCL Ltd. it is clear that assessee was paying these lease rentals as well as receiving the same amount from HPCL as lease charges. The assessee, therefore, rightly contended that the net impact of this entry is Revenue neutral. Nothing is brought to my notice, if similar additions have been made in earlier year or subsequent year. Addition is, therefore, wholly unjustified.- Decided in favour of assessee
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