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TMI Blog2016 (12) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... he Grounds of appeal raised by the assessee and Revenue in their respective appeals are as under :- ITA NO. 4507/MUM/2012 (Assessee's appeal) "1 : 0 Re.: Disallowance of Rs. 53,42,521/- being Building - Repairs, Renovation & Maintenance expenses: 1 : 1 The Commissioner of Income-tax (Appeals) has erred in confirming that repair expenditure to the extent of Rs. 53,42,521/- was capital in nature and in sustaining the disallowance. 1 : 2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject the repairs, renovation and maintenance expenses incurred by it during the year are revenue in nature and allowable as a deduction while computing its total income and the stand taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the additional disallowance so made by him and to re-compute its total income accordingly." ITA NO. 4735/MUM/2012 (Revenue's appeal) "1. Whether on facts, circumstances and in the law, the Ld. CIT(A) erred in deleting the entire addition of Rs. 58,89,925/- made by the Assessing Officer on account of membership fees treated as revenue receipts and further ignoring that the Hon'ble jurisdictional High Court decided the said issue in favour of the revenue for earlier years in assessee's own case?" 3. Insofar as the appeal of assessee is concerned, the first issue relates to the action of the income-tax authorities in treating an amount of Rs. 59,36,134/- debited under the head 'Building repairs, renovation and maintenance' as a capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment Year 2007-08, the claim of assessee for expenditure as being revenue in nature stands allowed and there is no dispute. Notwithstanding the aforesaid, the learned representative pointed out that the nature of expenditure would itself show that it does not result in creation of a new asset or a benefit of enduring nature in the capital field. Further, the learned representative relied on the following decisions to justify that the nature of expenditure was revenue and not capital :- (i) Evergreen Engineering Company Pvt. Ltd. vs. ACIT (ITA No. 1185/Mum/2013) (ii) International Tobacco Co. Ltd. vs. JCIT (ITA No. 277/Mum/2013) (iii) Porritts & Spencer (Asia) Ltd. vs. DCIT, 58 TTJ 195 (Del) (iv) Power Build Ltd. vs. ACIT, 126 TTJ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital in nature. Thus, the order of CIT(A) is set-aside and the Assessing Officer is directed to delete the addition. Thus, on this aspect, assessee succeeds. 9. Insofar as Ground of appeal no. 2 is concerned, same relates to the action of Assessing Officer in disallowing a sum of Rs. 36,540/- u/s 14A of the Act instead of a sum of Rs. 13,000/- suo moto disallowed by the assessee. In this context, the relevant facts are that the assessee had made a suo moto disallowance of Rs. 13,000/- u/s 14A of the Act on the ground that such expenditure related to exempt income. The Assessing Officer, however, computed the disallowance at Rs. 36,540/- by applying the provisions of Rule 8D(2)(iii) of the Income Tax Rules, 1962. The said action of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o exempt income has been received. The aforesaid point of law raised by the assessee is kept open as assessee has been allowed the necessary relief otherwise. In this manner, Ground of appeal no. 2 is allowed. 12. In the result, appeal of the assessee is allowed. 13. Insofar as the appeal of Revenue is concerned, the only issue relates to a sum of Rs. 58,89,925/- on account of life membership fee treated as revenue receipt. In this regard, it was a common point between the parties that the said issue is a recurring issue and in the past years, the same has been held in favour of the assessee following the judgment of the Hon'ble Bombay High Court in assessee's own case reported in 136 ITR 569 (Bom). The CIT(A) has relied upon order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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