TMI Blog2013 (12) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... re were in the nature of levies/taxes paid by an assessee to a government authority for making available the required infrastructure to run the business efficiently and effectively – The expenses are revenue in nature - Decided against Revenue. - ITA No.5158/Del/2012 - - - Dated:- 8-2-2013 - Diva Singh and T S Kapoor, JJ. For the Appellant : Shri Satpal Singh, Sr. DR For the Respondent : Shri V Raja Kumar, Adv. ORDER:- Per: T S Kapoor: This is an appeal filed by revenue against the order of CIT(A)-XV, New Delhi dated 03.07.2012. The grounds of appeal taken by revenue are as under :- 1. The CIT(A) has erred in law as well as circumstances of the case in holding ₹ 22,19,954/- paid to MCD on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture u/s 14A but deleted the disallowance made on account of conversion charges and parking charges for which revenue is in appeal before us. Ld. AR had submitted before CIT(A) the following submissions in respect of disallowance of ₹ 22,19,954/-:- (i) That the rented shop at Chandni Chowk is on the main road of Chandni Chowk and had been running since 1983 and the first shop of Haldi Ram Group, Delhi. During the year under consideration, there was a massive crack down on commercial establishments and shops in Delhi and there was ceiling and removal of unauthorized shops in commercial outlets in commercial and residential areas. Conditions were imposed that the shops should provide for proper parking to the customers and in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he retail outlets would have to be closed, therefore, the money was spent to run the business efficiently and conveniently. (v) That both the properties at Chandni Chowk and Moti Nagar are on rental basis and are not owned by the assessee company and by depositing the charges, the assessee had not acquired/added any value to the assets. Therefore, regularization/parking charges paid were revenue in nature and not a capital expenditure. Reliance was placed in the judgement of the following cases ;- (a) Escorts Ltd. Vs ITO (1989) 30 ITD (DEL) 349 (b) Lakshmiji Sugar Mills Co. P. Ltd. Vs CIT (1971) 82 ITR 376 (SC) (c) CIT Vs Hindustan Motors Ltd. (1968) 68 ITR 301 (CAL) Ld. CIT(A) on the basis of above submissions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd para 15 16 of page 32 relating to different judgements were read. Relying upon the above judgements, the Ld. AR argued that expenses were necessarily of revenue nature and, therefore, Ld. CIT(A) had rightly deleted the additions. 7. In his re-joinder, Ld. DR argued that factual matrix remains that parking is the concept which is considered by customers while deciding to shop so this parking right was of enduring nature. 8. We have heard rival parties and have gone through the material placed on record. We find that assessee had paid conversion charges from industrial unit to commercial unit in respect of its outlet at Moti Nagar. Similarly, the addition of ₹ 66,500/- was made on holding the same to be as one time parking ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in an installment. In applying the test of an advantage of an enduring nature, it would not be proper, to look at the advantage obtained, as lasting forever. The distinction which is required to be drawn is, whether the expense has been incurred to do away with, what is a recurring expense for running a business, as against, an expense undertaken for the benefit of the business as a whole; (iv) an expense incurred for acquisition of a source of profit or income would in the absence of any contrary circumstances, be in the nature of capital expenditure. As against this, an expenditure which enables the profit making structure to work more efficiently leaving the source or the profit making structure untouched, would be in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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