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2020 (10) TMI 363 - ITAT MUMBAIDisallowing repairs and maintenance expense - Whether expenses are incurred for the business, fully supported and paid by the Appellant? - HELD THAT:- The assessee has deducted due tax at source from the aforesaid payment. These facts would rebut revenue’s allegations that the payments were not made by the assessee. The assessee’s explanation that the invoice was inadvertently issued by the vendor in the name of group concern was to be accepted. Regarding the nature of the expenditure, the complete details of the same was placed before lower authorities and the expenditure was in the nature of designing work of certain premises from where the assessee’s business was being carried on. By expanding this amount, no new asset could be said to have come into existence and therefore, the expenditure was to be treated as revenue in nature. Finally, impugned disallowance as made by Ld. AO could not be sustained in the eyes of law - Decided in favour of assessee. Deferred Revenue Expenditure - Disallowance of non-revenue expenditure - HELD THAT:- Assessee vide submissions to Ld.AO had provided complete details as well as supporting documents of the expenditure so claimed u/s 37(1). The payment has been made to Maharashtra State Electricity Distribution Co. Ltd. towards electricity bill and the same is clearly revenue in nature. The payment to APCPDCL is towards service line charges and development charges, which is also revenue in nature. The stamp duty is towards registration of lease deed in assessee’s favor which is also revenue in nature. The expenses reimbursed by the assessee have been paid through bank account and routine expenditure in nature. Therefore, none of the expenditure could be said to be capital in nature and hence, allowable expenditure u/s 37(1) - The impugned disallowance so made stands deleted - Decided in favour of assessee.
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