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TMI Blog2021 (10) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... rwal, Accountant Member 1. Aforesaid appeal by assessee for Assessment Year (A.Y.) 2016-17 arises out of the order learned Commissioner of Income-Tax (Appeals)-49, Mumbai [CIT(A)], dated 24/01/2020 in the matter of assessment framed by Ld. Assessing Officer (AO) u/s. 143(3) r.w.s. 147 on 28/12/2018. The effective grounds read as under:- 1. The Ld. Commissioner of Income-tax (Appeals) ('CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustry. The assessee earned exempt dividend income of Rs. 96.29 Lacs and offered suo-moto disallowance of direct expenses for Rs. 0.07 Lacs in the return of income. However, Ld. AO making a contrary observation that the assessee did not offer any disallowance, computed aggregate disallowance of Rs. 11.88 Lacs as per Rule 8D which is direct expense disallowance u/r. 8D(2)(i) for Rs. 0.07 Lacs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tments are to be considered which have yielded exempt income during the year. This plea is also to be rejected since after amendment to Rule 8D w.e.f. 02/06/2016, the computation u/r. 8D has undergone change and it has been made clear that the amount equal to 1% of the annual average of the monthly averages of the opening and closing balances of the value of investment, income from which does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Maintenance 3.1. Upon perusal of Profit & Loss account, it transpired that the assessee incurred expenditure of Rs. 53.12 Lacs which was in the nature of installation of lawn tennis court, repairs of boundary wall, supply of aluminum sheets, electrical works, purchase of water closet, fabrication charges, hardware items etc. The same was claimed by the assessee as revenue expenditure. However, Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less, the expenditure could not be termed as capital expenditure. Similar is the view of Tribunal in assessee's own case for A.Y. 2009-10, ITA No. 2093/Mum/2013 order dated 21/12/2017. Therefore, we direct Ld. AO to allow the same as revenue expenditure and reverse the depreciation granted on these items. This ground stand allowed. 4. The appeal stand partly allowed in terms of our above orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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