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TMI Blog2017 (5) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 14,15,836.00 with respect to expenditure incurred on repair and maintenance; ii) Delete the addition of Rs. 44,72,579.00 on account of Unclaimed credit balances; iii) Delete the addition of Rs. 23,14,000.00 on account of advances paid" 3. The issue raised in the grounds of appeal no.1 is against the confirmation of addition of Rs. 14,15,836/- by the ld.CIT(A) in respect of repairs and maintenance disallowed by the AO. 4. Brief facts of the case are that the assessee is a Co-operative Bank and has taken on lease premises on various locations for the purposes of carrying out its business through its branches and the assessee incurred expenditures to repair and maintain these premises for making these premises suitable for business a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aired and renovated in order to run the business smoothly and incurred expenditures for demolition and construction of wall, construction of new plumbing work, construction telephonic operator cabin, construction of new water supply pipes, telephonic maintenance etc and accordingly assessee claimed said expenditures as revenue expenditures on the ground that no new asset was created. In our opinion, the ld.CIT(A) is not correct, in view of the facts that the premises in which the repairs and maintenance were carried out by the assessee were taken on rent and it would be against the basic principle of accountancy and provision of law to treat the said expenditures incurred on repairing and maintenance as capital nature. We, therefore, set as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be adjusted in the subsequent years and were actually adjusted and therefore should not be added to the total income of the assessee. In our opinion, this matter requires fresh verification at the end of the AO and therefore the same is being remanded to the file of the AO decide the issue as per facts and law. But if these balances are adjusted in subsequent years, the AO is directed not to make any addition on this score in the set aside assessment. In the result, this ground is allowed for statistical purposes. 10. The issue raised in the third ground of assessee's appeal is against the confirmation of Rs. 23,14,000/- by the ld.CIT(A) as made by the AO in respect of disallowances of claim of advances written off under the head comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this fact prior to giving the contract to such vendor that whether the said vendor was competent enough to execute such important technical work. In absence of any such documentation, the claim of the appellant is completely appears to be made without substance or any basis of documentation, which is merely having base of having claim made of 'Bad Advance' or bad debt. Even this claim is also not sustainable as the appellant's own act suggests that the appellant has filed arbitration towards the said amount before the arbitrator, which is evident from the Annexure VI of the appellant submission. In these all facts and submission available on record, I consider it proper and appropriate to hold that the A.O. 's action was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, annual licence fee etc. These software equipments has short life span having no enduring benefit and it requires often change and in such circumstances, the expenditure incurred for purchase of these software is called as revenue expenditure and not capital in nature. This issue is covered by the decision of Hon'ble Bombay High Court in the case of CIT Vs. Raychem RPG Ltd. (2012) 346 ITR 138 (Bom), wherein it has been held as under: "Held, (i) that the Tribunal in the assessee's own case for the assessment year 2001-02 had allowed the software expenditure as revenue expenditure finding that software did not form part of the profit-making apparatus of the assessee. Further, it held that the business of the assessee was that of manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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