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2017 (5) TMI 211 - ITAT MUMBAI

2017 (5) TMI 211 - ITAT MUMBAI - TMI - Claim of depreciation on building u/s 32 - period of use of premises by assessee - Held that:- We find that the bill was issued in the name of BNS, though he was not in possession of the property after August, 2010 and that the bill was raised for the period for July,2010 to December,2010. As the sale of the flats was also in possession of the property during the said period, so, the bill was issued in his name.But, during the intervening period, he had han .....

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depreciation of ₹ 23.68 lakhs.First ground of appeal is decided in favour of the assessee. - Disallowance of professional fees paid for compilation of Share Purchase Agreement - Held that:- We find that the FAA has mentioned that the AR of the assessee had stated that there was no objection if the disputed amount was treated as capital expenditure, that accordingly he held that expenditure was capital in nature. Before us, the assessee has not produced any evidence to show that its AR .....

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eds further verification by the AO. Therefore, in the interest of Justice, we are restoring that the issue to the file of the AO for fresh adjudication. He is directed to afford a reasonable of urgency of into the assessee.Third ground is decided in favour of the assessee, in part - I.T.A./5349/Mum/2014 - Dated:- 3-5-2017 - Shri Rajendra, Accountant Mumber And Amarjit Singh, Judicial Mumber For The Revenue : A K Nayak-DR For The Assessee : Shri- Ms. Mrigakshsi Joshi-AR PER RAJENDRA, AM Challengi .....

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building at ₹ 11.84 lakhs as against ₹ 23.68 lakhs,u/s.32 of the Act.During the assessment proceedings, the AO found that assessee had shown addition to immovable property at ₹ 4.73 crores, that it had claimed depreciation of ₹ 23.68 lakhs there on for the year under appeal. He directed the assessee to file details in that regard with supporting evidences. After considering its letter,dated 27/02/2014,the AO observed that the agreement to purchase the flats was executed .....

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075/-. 2.1.Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority(FAA).After considering the submission of the assessee and the assessment order,he held that the assessee had purchased the immovable property in August,2010 that the assessee had purchased the flats as per the possession letter dated 27/08/2010,that it was eligible to occupy the flats from the said date,that no evidence was submitted before the AO or before him to prove that assesse .....

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resentative (AR) argued that the assessee had purchased the flats for its guesthouse in August 2010, that last instalment was paid on 27/08/2010, that the possession later was issued on the same date, it was put to use in the month of August,2010, that the payment of society bill could not prove the date of possession. He referred to the pages 73, 74, 81 and 91 of the paper-book. The Departmental Representative (DR) argued that there was no evidence to prove that bank statement were wrong, that .....

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d to the assessee on 14/08/2010, that the AO and the F AA referred to the society bill dated 8/10/2010,that they held that assessee had used the premises for a period less than six months. In our opinion,the confusion has arisen because of the society bill, dated 8/10/2010. We find that the bill was issued in the name of BNS, though he was not in possession of the property after August, 2010 and that the bill was raised for the period for July,2010 to December,2010. As the sale of the flats was .....

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f the flats by the assessee in the month of August, 2010. Therefore, reversing the order of the FAA we hold that the assessee was entitled to depreciation of ₹ 23.68 lakhs.First ground of appeal is decided in favour of the assessee. 3.Second ground of appeal is about disallowance of professional fees of ₹ 70,000 paid for compilation of Share Purchase Agreement.During the assessment proceedings,the AO found that the assessee had debited and amount of ₹ 9.2 lakhs on account of le .....

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.After considering the submission of the assessee, the AO observed that the expenditure was incurred for sectorial work in relation to change to the internal share pattern of the company,that the expenses incurred by the assessee was liability of the shareholders, that the expenses were not incurred wholly and exclusively for the purposes of the business carried out by it.He disallowed ₹ 70,000 paid to the consulting for and added that it to the total income of the assessee. 3.1.Aggrieved .....

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treating the expenditure as capital expenditure. Accordingly he held that amount in question spent by the assessee for changing the internal shareholding pattern of the company was a capital expenditure. 3.2.Before us, the AR argued that the expenditure incurred by the assessee was directly related with the carrying on business of the assessee, that the FAA had wrongly treated it as capital expenditure.The DR supported the order of the FAA. We find that the FAA has mentioned that the AR of the a .....

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