9911796707
TMI Blog2013 (12) TMI 891X X X X Extracts X X X X X X X X Extracts X X X X ..... ure to the extent of 50% of the total expenditure. Here the CIT (A) has failed to appreciate the facts and the documents produced substantiating such expenditure. 3. The Hon'ble CIT (A) is not justified in disallowing 50% of the total expenditure of Hoarding Maintenance Expenses of Rs.2,02,72,305/- whereas the Assessing Officer had disallowed 80% of expenses comprising of steel purchase of Rs.1,62,58,113/- only. The Hon'ble CIT (A) has inadvertently disallowed 50% whole Hoarding Maintenance expenses whereas only the steel purchases was subejct matter of Appeal". 3. Briefly stated the facts are as follows: The assessee is a partnership firm carrying on the business of outdoor advertising. For the concerned assessment year the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintenance expenditure of Rs.40,14,192 (2,02,72,305-1,62,58,113) over and above Rs.30,51,622/-". 4. Aggrieved by the addition, the assessee carried the matter in appeal before the first appellate authority. The CIT (A) disallowed 50% of the total expenditure out of the hoarding maintenance expenses of Rs.2,02,72,305/-. Therefore, on account of reduction to 50% of the total hoarding expenses, the amount that was added back and capitalized was a sum of Rs.1,01,36,152/- instead of Rs.1,30,06,490/- capitalized by the Assessing Officer. The relevant findings of the CIT (A) read as follows: "7. After careful consideration of the facts and circumstances of the case and after examining the arguments of the Assessing Officer and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the assessee for the past few years and current years are as follows: Particulars AY 2002- 03 AY 2003- 04 AY 2004- 05 AY 2005- 06 Own hoardings 39 46 52 54 Leased hoardings 7 8 10 19 Leased Medians 0 0 0 119 6.1 From the above table, it is clear that there has been a significant increase in leased hoardings during the year under appeal and, further, as much as 119 of them are new median hoardings leased during the year. The assessee had entered into an agreement with Bruhat Bangalore Mahanagara Palike (BBMP) to erect the Road Medians. In return, the assessee was entitled to collect the revenue from their customers for advertising displayed on such hoardings. We have perused the agreement entered into by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
