TMI Blog2018 (11) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... inflating the expenditure so as to reduce the taxable income. The genuineness of the expenses are not in doubt. Thus hold that the entire expenses were incurred on account of Revenue expenditure - Decided in favour of assessee. TDS u/s 194C - non deduction of tds on advertisement expenses - disallowance u/s 40(a)(ia) - amount not exceeding in a year at ₹ 75,000/- - Held that:- Where the aggregate of the amounts of such sum credited or paid or likely to be credited or paid during the financial year exceeds ₹ 75,000/-, the person responsible for paying such sum referred to in sub-section (1) shall be liable to deduct Income tax under this section”. The above provision clearly shows that no deduction is required under the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of assessee - ITA.No.4912/Del./2018 - - - Dated:- 1-11-2018 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Assessee : Sh. P.C. Yadav, Adv. Ms. Nida Fatima, Adv. For The Revenue : Dr. Anjula Jain, Sr. DR ORDER This appeal by assessee has been directed against the order of Ld. CIT(Appeals)-Rohtak dated 05.06.2018 for AY 2014-15. 2. I have heard Ld. Representatives of both the parties and perused the material available on record. 3. On ground no. 1, assessee challenged the disallowance of ₹ 1,96,228/- out of renovation expenses. 4. Assessee is a proprietor of M/s Mahalaxmi Petroleum, Mahendergarh and during the year assessee was engaged in the business of running a retail Fuel Outlet (Petrol Pum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GP rate in assessment year under appeal. AO accepted substantial renovation expenses incurred by assessee wholly and exclusively for the purpose of business. Thus, it was considered as Revenue expenditure. The AO has not brought anything on record, as to on incurring renovation expenses what capital had been generated by the assessee. The nature of business clearly shows that renovation expenses are required to be incurred for smooth functioning of retail outlet of petrol pump. Since, turnover of assessee and GP rate have increased, therefore, there is no question of assessee inflating the expenditure so as to reduce the taxable income. The genuineness of the expenses are not in doubt. In this view of the matter, I hold that the entire exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirm the addition. 9. After considering the rival submission, I am of the view that the addition is unjustified. Ld. Counsel for the assessee submitted that section 194C is not applicable in this case, because the amount paid in the year was less than ₹ 75,000/- as per proviso to section 194C(5) of the Act. Section 194C(5) of the Act provides no deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed ₹ 30,000/-. Provided that where the aggregate of the amounts of such sum credited or paid or likely to be credited or paid during the financial year exceeds ₹ 75,000/-, the person responsible for paying s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade addition of ₹ 79,200/-. The Ld. CIT(A) confirm the addition. 12. After considering the rival submission, I am of the view that addition is unjustified. Ld. Counsel for the assessee submitted that assessee is receiving this amount from HPCL as lease charges and M/s HPCL in turn is charging this amount from assessee as service charges. The assessee is paying is lease rental of ₹ 6,600/- to M/s HPCL. Therefore, the net impact of this entry is Revenue neutral. The authorities below have failed to understand these entries. The copies of the accounts are filed at pages 38 onwards in the PB. He has submitted that on similar facts no addition have been made in earlier year and subsequent year. In view of the above and considering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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