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TMI Blog1984 (2) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... however, keeping in view the past history of the case, restricted the disallowance to Rs. 3,684. 3. The assessee is now in appeal before us. We have heard the parties. We find that in the asst. yrs. 1977-78 and 1978-79, there were disallowances to the extent of Rs. 1,000 in each year. In the asst. yr. 1978-79, the total expenses were only of Rs. 2,096. In the year under appeal, the expenses have gone up to Rs. 7,127, which include donations of Rs. 2,147. In our opinion, therefore, it will be reasonable to disallow Rs. 3,147 consisting of Rs. 2,147 for donations and another Rs. 1,000 for non-disallowable expenses. The assessee will, therefore, get a relief of Rs. 537. 4. The next contentions relates to disallowance of 5,000 out of welfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal also. 7. The next contention relates to disallowance out of travelling expenses. The ITO disallowed Rs. 3,000 on the ground that the expenses also included fooding and lodging of the partners. The CIT (A) reduced the disallowance of Rs. 1,000. 8. The assessee is now in appeal before us. We find that in the immediately two preceding years, disallowance to the extent of Rs. 500 in each year were sustained in appeal. In the year under appeal, the expenses have gone up to Rs. 7,164 from about Rs. 4,000 and odd in each of the preceding two years looking into the rise in the expenses and also the fact that they include fooding and lodging for the partners, we hold that the disallowance of Rs. 1,000 is reasonable and calls for no interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as submitted that the assessee had been charging interest from the above landlord only at the rate of 9% for the last fifteen years. It was also submitted before him that in the year under appeal, only Rs. 27,000 had been advanced to Jawahar Lal Jain, HUF on which interest worked out to Rs. 810. It was further argued before the CIT (A) that the disallowance could not exceed Rs. 3,386, which had been paid by the assessee to the bank. The CIT (A) without discussing the matter further reduced the disallowance to Rs. 3,386. 12. The assessee is now in appeal before us. We agree with the finding of the lower authorities that there was no reason for charging lower rate of interest from M/s Jawahar Lal Jain, HUF against the assessee's own borrowi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irs of the above portion were borne by the assessee. Obviously, therefore, the expenses incurred for the benefit of the partners could not be treated as having been laid out or expended wholly and exclusively for the purposes of the business. In the absence of any details, the estimate of Rs. 2,000 also appears to be reasonable. We, therefore, confirm the disallowance. 14. In the year under appeal, renovation was carried on of the stage in order to exhaust impure air from the hall and draw in fresh air therein. A girder costing Rs. 3,037 and rounds costing Rs. 1,602 were purchased for the purpose. Besides, expenses were also incurred on the purchase of exhaust fan and material and labour etc. The ITO was of the view that this was in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for our consideration, therefore, is whether the expenditure of the nature incurred by the assessee is of capital or revenue nature. The various decisions cited at the Bar related to replacement of old asset and, therefore, it was held that they were allowable either as repairs or as expenditure incurred wholly and exclusively for the purpose of the assessee's business. The present case is, however, different. In this case, renovation has been carried out by fixing a new exhaust fan. There is no evidence that it was by way of replacement of any old exhaust fan. Renovation was carried out in order to exhaust impure air from the hall and draw in fresh air in the hall, which it appears, was a new device to the cinema hall. In our opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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