TMI Blog2021 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... capitalized ₹ 59,22,000/- in this regard. Hence, we set aside the order of authorities below and allow the assessee s ground. - I.T.A. No. 6371/Mum/2019 (Assessment Year 2013-14) - - - Dated:- 1-7-2021 - Shri Shamim Yahya (AM) And Shri Pavan Kumar Gadale (JM) Assessee by None Department by Vijay Kumar Menon ORDER Per Shamim Yahya (AM) :- This appeal by the Assessee is directed against the order of learned CIT(A)-33 dated 22.07.2019 and pertains to Assessment Year 2013-14. 2. The grounds of appeal read as under : Estimated Disallowance of ₹ 26,40,199 of Revenue Expenditure. 1.01 The learned CIT (A) erred in confirming the addition of Expenditure amounting to ₹ 26,40,199 after a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered assessee's submission and found the same not satisfactory, without any supporting documents and hence not acceptable. From the AO's findings and by assessee's own admission it has been established that during FY.2012-13 assessee carried out a major renovation of its premises, which was not in The nature of current repairs, a condition required to be fulfilled in order to claim the Expenses as deduction u/s.30(a)(ii). Instead the expenditure was incurred in order to adapt the premises to a new and different advantage. Indeed, assessee himself has admitted that it had incurred expenditure in order to bring into existence a new asset. What is debated here is the assessee's claim of certain proportion of this expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing disallowances:- 3.18 Total Disallowance works out to ₹ 46,40,99/-. Depreciation !10% being ₹ 2,32,010/- is allowed to the assessee. Penalty proceedings u/s 271(1)(c) initiated separately for furnishing inaccurate particulars of income. 7. Upon assessees appeal Ld. CIT(A) held that AO has not made proper enquiry and sustained adhoc addition, without bringing anything further on record. 8. Ld.CIT(A) s conclusion is as under:- 16. Considering the entirety of facts. I am of the view that the assessee had incurred a substantial amount on its office and factory premises on works involving civil work, structural glazing, wood work, false ceiling, water-proofing, plumbing, electrical wiring and fittings, flooring, plas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that AO has not made proper enquiry. Hence, Ld.CIT(A) has sustained the disallowances partly on adhoc basis. 11. It is settled law that disallowances cannot be made on surmises and conjectures The power of Ld.CIT(A) are co-terminus. with that of.AO. The Ld.CIT(A) has grossly erred in not making the enquiry, he was of the opinion should have been conducted. Moreover, the reasoning that the expenditure incurred on building repair, repair maintenance and labour charges, in this regard bring about an expenditure of capital nature on an adhoc basis is not sustainable on the basis of material brought on record. This is more so, when assessee has already capitalized ₹ 59,22,000/- in this regard. 12. Hence, we set aside the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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