TMI Blog2015 (3) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on this issue and the same is accordingly cancelled. Disallowance of Repair and Maintenance Expenses and disallowance out of Foreign Travelling Expenses - The issue that whether Repairs and Maintenance in respect of leased buildings was revenue or capital in nature or whether the part of the Foreign Travelling Expenses were for the business purposes of the assessee is clearly debatable in nature. This is a case where the assessee has disclosed all the material facts necessary for assessment at the time of filing of the return itself. The conduct of the assessee in this case was bonafide. In these facts of the case, we are of the view that it is not a fit case for levy of penalty u/s 271(1)(c) of the Act on these two items of di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that out of five disallowances, the disallowance with respect to Additional Depreciation u/s 32(1)(iia) of the Act and Exemption u/s 10B of the Act has been restored to the file of the AO by the Tribunal and accordingly the penalty with respect to these two items of disallowance may be deleted. With regard to the addition made on account of the disallowance of Repair and Maintenance in respect of leased building, he submitted that the same has been held as capital expenditure and the addition was made based on information and facts made available by the assessee itself. He submitted that out of disallowance of ₹ 20.78 lacs on account of Foreign Travelling Expenses, the CIT(A) has restricted the disallowance to ₹ 3.59 lacs which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Guarantee Commission paid to the Directors and their remain no basis for levy of penalty u/s 271(1)(c) of the Act on this issue and the same is accordingly cancelled. With regard to the other two items of disallowance of Repair and Maintenance Expenses and disallowance out of Foreign Travelling Expenses, we find that part of disallowance has been confirmed in appeal by the appellate authority. However, the disallowance was made on the basis of information and facts made available to the AO by the assessee itself. The fact that assessee has in fact spent the amounts in question, is not in doubt. Moreover, it is a clear case of difference of opinion with regard to the allowability of certain claim of expenditure made by the assessee. The issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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