EVERGREEN ENGINEERING COMPANY P.LTD, MUMBAI V. ADDL CIT 8(1), MUMBAI

ITA 117/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2229 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 07-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAVEEN GUPTA
• Assessee Lawyers: NEOMI LAKHPATIA
• Keywords: Depreciation; Revenue expenditure; Capital expenditure
• Section: 143(3); 37; 154

Judgement Text

I IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ I.T.A. NO. 117 /MUM/2015 ( / ASSESSMENT YEAR : 2010-11) EVERGREEN ENGINEERING COMPANY PVT. LTD., 35/B, MAHAL INDUSTRIAL ESTATE, MAHAKALI CAVES ROAD, ANDHERI (E), MUMBAI 400 093. / V. ADDL. CIT, RANGE 8(1), AAYAKAR BHAVAN, M.K. ROAD, CHURCHGATE, MUMBAI 400 020. ./ PAN : AAACE 2499L ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY SHRI NEOMI LAKHPATIA REVENUE BY : SHRI NAVEEN GUPTA (D.R.) / DATE OF HEARING : 16-08-2016 / DATE OF PRONOUNCEMENT : 31-10-2016 / O R D E R PER RAMIT KOCHAR, ACCOUNTANT MEMBER THIS APPEAL FILED BY THE ASSESSEE BEING ITA NO. 11 7/MUM/2015, IS DIRECTED AGAINST THE APPELLATE ORDER DATED 9 TH OCTOBER, 2014 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 16, M UMBAI (HEREINAFTER CALLED THE CIT(A)), FOR THE ASSESSMENT YEAR 2010- 11, THE APPELLATE PROCEEDINGS BEFORE THE LEARNED CIT(A) ARISING FROM THE ASSESSMENT ORDER DATED 22 ND FEBRUARY, 2013 PASSED BY THE LEARNED ASSESSING OFF ICER (HEREINAFTER CALLED THE AO) U/S 143(3) OF THE INC OME TAX ACT,1961 (HEREINAFTER CALLED THE ACT). ITA 117/MUM/2015 2 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE IN THE MEMO OF APPEAL FILED WITH THE INCOME TAX APPELLATE TRIBUNAL, MUMBA I (HEREINAFTER CALLED THE TRIBUNAL) READ AS UNDER:- I. DISALLOWANCE OF REPAIRS AND MAINTENANCE EXPENSE S OF RS. 5,36,217/- BY TREATING THE SAME AS CAPITAL EXPE NDITURE. 1. THE LEARNED CIT(A) ERRED IN CONFIRMING DISALLOWA NCE OF THE REPAIRS AND MAINTENANCE EXPENSES ON FACTORY BUILDING OF RS. 5,36,217/- PAID TO PRABHU CONSTRUCTIONS, TREATING THE SAME AS CAPITAL - EXPENDITURE AFTER ALLOWING DEPRECIATION THEREON OF R S. 53,622/-. 2. THE LEARNED CIT(A) OUGHT NOT TO HAVE CONFIRMED DISA LLOWANCE OF REVENUE EXPENDITURE OF RS. 5,36,217/- AS CAPITAL EXPE NDITURE. 3. WITHOUT PREJUDICE TO ABOVE, THERE WAS ERROR IN COMPU TING THE DISALLOWANCE FOR WHICH A RECTIFICATION APPLICATION I S ALSO MADE U/S 154 DATED 11.3.2013 SEPARATELY. 4. THE DISALLOWANCE OF REPAIRS & MAINTENANCE EXPENS ES AS CAPITAL EXPENDITURE REQUIRES TO BE DELETED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A FIRM ENGAGED IN THE BUSINESS OF MANUFACTURING OF ENGINEERING GOODS LIKE LIGHTING, ELECTRICAL, ELECTRONICS, AUTO ANCILLARY PRODUCTS AND GLOW SIGNA GES. IT WAS OBSERVED BY THE A.O. ON PERUSAL OF SCHEDULE 16 TO THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH, 2010 THAT THE ASSESSEE HAS CLAIMED A SUM OF RS. 19,92,370/- ON ACCOUNT OF REPAIRS TO BUI LDING (FACTORY). IN THE COURSE OF SCRUTINY PROCEEDINGS U/S 143(3) READ WITH SECTION 143(2) OF THE ACT, THE ASSESSEE WAS ASKED TO FURNISH THE PARTY-WISE BR EAK UP OF THESE EXPENSES AND TO SHOW CAUSE AS TO WHY THE EXPENSES ON ACCOUNT OF REPAIRS TO BUILDING (FACTORY) SHOULD NOT BE CAPITALIZED AND ALSO TO FUR NISH COPIES OF THE RELEVANT BILLS AND VOUCHERS. THE ASSESSEE PRODUCED COPIES OF THE BILLS RAISED BY A CIVIL CONTRACTOR VIZ. M/S. PRABHU CONSTRUCTIONS. ON PERUS AL OF THE SAME , IT WAS OBSERVED BY THE AO THAT CERTAIN ITEMS OF EXPENDITUR E INCLUDED IN THOSE BILLS ITA 117/MUM/2015 3 ARE IN THE NATURE OF CAPITAL EXPENDITURE AND THE SA ME NEEDS TO BE DISALLOWED AS REVENUE EXPENSE AS CLAIMED BY THE ASSESSEE. IT W AS POINTED OUT TO THE ASSESSEE THAT THE SIMILAR ISSUE AROSE FOR CONSIDERA TION BEFORE THE THEN A.O. IN THE PRECEDING YEAR I.E. ASSESSMENT YEAR 2009-10 WHE REBY CERTAIN AMOUNT OF EXPENDITURE INCURRED ON ACCOUNT OF REPAIRS TO FACTO RY BUILDING WAS CAPITALIZED AND THE SAME HAS ALSO BEEN UPHELD BY THE LD.CLT(A) AND IT WAS CONFRONTED TO THE ASSESSEE THAT AS TO WHY THE SIMILAR STAND SHOUL D NOT BE TAKEN ON THIS COUNT IN THE YEAR UNDER CONSIDERATION. THE SUBMISSI ON OF THE ASSESSEE WERE CONSIDERED BY THE AO BUT THE SAME WERE NOT ACCEPTAB LE TO THE AO AS SOME OF THE ITEMS NOTICED FROM THE BILLS RAISED BY M/S. PRA BHU CONSTRUCTIONS FURNISHED BY THE ASSESSEE APPEARED TO BE IN THE NAT URE OF CAPITAL EXPENDITURE TO THE AO AND AS SUCH IN THE OPINION OF THE AO THE SAME ARE NOT ALLOWABLE IN VIEW OF THE PROVISIONS LAID DOWN IN SUB-SECTION (1) OF SECTION 37 OF THE ACT AS THE SAME IS CAPITAL EXPENDITURE AND THE FOLLOWING E XPENSES WERE DISALLOWED AND WERE CAPITALIZED AGAINST WHICH DEPRECIATION WAS ALLOWED AS PER THE PROVISIONS OF THE SCHEME OF THE ACT BY THE AO, VIDE ASSESSMENT ORDER DATED 22-02-2013 PASSED BY LEARNED AO U/S. 143(3) OF THE ACT. BILL NO. DATE DESCRIPTION AMOUNT (RS) 15 14.08.2009 CONCRETE DEMOLISHING 821.80 14.08.2009 CONCRETE WALL 934.44 PLASTER 4411.00 REPAIRING TADPATRI DAMBER 107000.00 SHUTTER AND WINDOW PATTI GRANITE 41778.00 15 14.08.2009 KOTA WITH MIRROR POLISH 176922.20 28 08.10.2009 CONCRETE DEMOTION 421.75 FLOORING 13626.90 SHIELD 4433.80 5 22.05.2009 CONCRETE 44625.00 CONCRETE WITH SOLING FIXING BY SAND 81982.50 CONCRETE AND RUBBLE SOLING 46510.10 14 14.08.2009 BRICKS MASONRY 6750.00 PLASTER 6000.00 TOTAL 536217.49 ITA 117/MUM/2015 4 4.AGGRIEVED BY THE ASSESSMENT ORDER DATED 22-02-201 3 PASSED BY THE A.O. U/S 143(3) OF THE ACT, THE ASSESSEE FILED FIRST APP EAL BEFORE THE LD. CIT(A). 5. THE LD. CIT(A) REJECTED THE APPEAL OF THE ASSESS EE FOLLOWING THE DECISION OF THE LEARNED CIT(A) WITH RESPECT TO THE APPEAL OF THE PRECEDING ASSESSMENT YEAR I.E. 2009-10. DURING APPELLATE PROCEEDINGS, T HE LD. CIT(A) OBSERVED THAT THE ASSESSEE HAD FIVE DIFFERENT UNITS AT DIFFERENT LOCATION HAVING HUGE AREA. THE DETAILS OF UNITS ON WHICH THE REPAIRS & PAINTIN GS ARE AS UNDER:- - UNIT I AT MAROL ANDHERI EAST (21389 SQ. FT.) - UNIT II AT VASAI VILLAGE GOKHIWARE (8135 SQ. FT .) - UNIT III AT NAVGHAR, VASAI (E) (5430 SQ. FT.) - UNIT V AT VASAI CHINCHPADA, VILLAGE GOKHIWARE ( 28328.20 SQ. FT.) THE ASSESSEE SUBMITTED THAT THE FACTORY BUILDINGS W ERE PURCHASED/CONSTRUCTED IN YEARS 1971-72, 1997-98, 19 89-90, 2002-03, 2004- 05 AND THE REPAIRS WERE CARRIED OUT TO KEEP THE PRE MISES IN USABLE CONDITION, THERE IS NO NEW ASSET WHICH CAME INTO EXISTENCE DUE TO THE REPAIRS CONDUCTED BY THE ASSESSEE. IT WAS SUBMITTED THAT ALL THE PREM ISES ARE VERY OLD, REQUIRES REPAIRS & MAINTENANCE TO KEEP IT IN THE WORKING CON DITION. IT WAS SUBMITTED BY THE ASSESSEE THAT THE REPAIRS AND MAINTENANCE EX PENDITURE INCURRED WERE NECESSARY TO MAINTAIN THE PRODUCTIVE CAPACITY OF TH E BUILDING AND ARE IN THE NATURE OF 'CURRENT REPAIRS' WHICH ARE ALLOWABLE AS PER SECTION 30 OF THE ACT AND THESE ARE NOT CAPITAL EXPENDITURE AS DEMOLITION DOES NOT GIVE RISE TO ANY NEW CAPITAL STRUCTURE. IT WAS SUBMITTED BY THE ASSE SSEE THAT THE PLASTERING, WINDOW DEMOLISHING & FITTING, PAINTING WORK, CIVIL WORK, PLASTERING, CONCRETE, REPLACEMENT OF FLOORING ETC ARE REVENUE EXPENDITURE AND ALLOWABLE AS CURRENT REPAIRS U/S 30 OF THE ACT. IT WAS SUBMITTED THAT NO NEW ASSET CAME INTO POSSESSION NOR ANY ENDURING ADVANTAGE WAS OBTAINED BY THE ASSESSEE BY INCURRING THESE EXPENDITURE WHICH ARE IN NATURE OF CURRENT REPAIRS. IT WAS ITA 117/MUM/2015 5 ALSO POINTED OUT THAT ERROR HAS TAKEN PLACE WHEREBY THE DISALLOWANCE FOR REPAIRING WORK ON TADPATRI DAMBER SHUTTER AND WIND OWS PATTI HAS BEEN WRONGLY TAKEN AT RS. 1,07,000/- IN THE ASSESSMENT O RDER , INSTEAD OF CORRECT AMOUNT RS. 10,700/-, THUS THE AMOUNT OF DISALLOWANC E SHOULD BE RS. 4,39,917/- INSTEAD OF RS. 5,36,217.49 ADDED BY THE LEARNED AO IN THE ASSESSMENT ORDER DATED 22-02-2013 PASSED U/S 143(3) OF THE ACT FOR WHICH RECTIFICATION APPLICATION U/S. 154 OF THE ACT WAS F ILED WITH THE AO ON 11.03.2013. THE ASSESSEE RELIED UPON MANY CASE LAW S WHICH ARE MENTIONED IN THE LD. CIT(A)S ORDER VIDE PAGES 7 & 8. THE LD . CIT(A) FOLLOWING HIS PREDECESSORS ORDER FOR THE ASSESSMENT YEAR 2009-10 HELD THAT THESE EXPENSES ARE CAPITAL IN NATURE AND THE EXPENDITURE DEBITED I N THE BOOKS OF ACCOUNT IS OF THE NATURE OF PUTTING KOTA MARBLE, FLOORING, CONCRE TE, SHUTTER AND WINDOW PATTI ETC. WHICH WOULD INCREASE THE LIFE AND VALUE OF THE BUILDING AND WOULD ALSO PROVIDE ENDURING BENEFITS TO THE BUSINESS. THE EXPENDITURE WAS CONFIRMED TO BE OF CAPITAL NATURE BY LEARNED CIT(A) IN IDENTICAL CIRCUMSTANCES WHILE DECIDING THE APPEAL OF THE ASSESSEE FOR THE A SSESSMENT YEAR 2009-10. THUS , THE ACTION OF THE A.O OF DISALLOWING THE EXP ENDITURE AS REVENUE EXPENDITURE , AND INSTEAD TREATING THE SAME AS CAPI TAL EXPENDITURE AND ALLOWING THE DEPRECIATION ON THE SAME WAS CONFIRMED BY LEARNED CIT(A) VIDE APPELLATE ORDERS DATED 09-10-2014 . 6.AGGRIEVED BY THE APPELLATE ORDER DATED 09-10-2014 PASSED BY THE LD. CIT(A), THE ASSESSEE FILED APPEAL WITH THE TRIBUNAL. 7. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SIMILAR ISSUE AROSE IN THE PRECEDING ASSESSMENT YEAR 2009-10 BEFORE THE TR IBUNAL, WHEREBY THE TRIBUNAL IN ITA NO. 1185/MUM/2013 FOR THE ASSESSMEN T YEAR 2009-10 VIDE APPELLATE ORDERS DATED 24 TH APRIL, 2015 ALLOWED THE CLAIM OF THE ASSESSEE TOWARD REPAIR AND MAINTENANCE EXPENDITURE BY HOLDIN G THE SAME TO BE REVENUE EXPENDITURE AND, HENCE, THE MATTER IS COVER ED BY THE AFORE-STATED ITA 117/MUM/2015 6 DECISION OF THE TRIBUNAL FOR ASSESSMENT YEAR 2009-1 0 AS THE FACTS ARE IDENTICAL IN THE INSTANT ASSESSMENT YEAR. 8. THE LD. D.R. RELIED ON THE ORDER OF THE AUTHORIT IES BELOW. 9. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD INCLUDING THE AFORE-STATED TRIB UNAL ORDER. WE HAVE OBSERVED THAT THE ASSESSEE HAS FIVE FACTORIES WITH HUGE COVERED AREAS AS MENTIONED IN PRECEDING PARAS OF THIS ORDER AND THE SE FACTORIES WERE STATED TO BE BUILT /ACQUIRED IN THE YEAR 1971-72, 1997-98,198 9-90 TO 2002-03 , 2004- 05. . THE ASSESSEE HAS CLAIMED TO HAVE INCURRED EX PENSES FOR REPAIR AND MAINTENANCE FOR MAINTENANCE OF THE EXISTING FIVE FA CTORIES AND CLAIMED THE SAME AS CURRENT REPAIRS U/S 30 OF THE ACT. THE REV ENUE HAS CONTENDED THAT THE SAID EXPENSES ARE CAPITAL EXPENDITURE ON WHICH DEPRECIATION WAS ALLOWED BY THE AUTHORITIES BELOW . WE HAVE GONE THROUGH TH E DETAILS OF EXPENDITURE INCURRED WHICH ARE PLACED IN PAPER BOOK PAGE 5 TO 1 0 FILED WITH THE TRIBUNAL. WE HAVE OBSERVED THAT THE SAME ARE INCURRED TOWARDS DEMOLISHING OF EXISTING STRUCTURE, PLASTERING, MASONARY , PIPE FITTING , WI NDOW REMOVING & FITTING, REPAIRING, PAINTING WORK, CIVIL WORK, PLASTERING, C ONCRETE, REPLACEMENT OF FLOORING, KOTA WITH MARBLE POLISH ETC. . WE HAVE O BSERVED THAT SIMILAR EXPENSES WERE ALSO INCURRED BY THE ASSESSEE IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR WHICH WERE ALLOWED BY THE TRIBUNAL BY HOLDING THE SAME AS REVENUE EXPENDITURE IN ITA NO. 1185/MUM/2013 FOR TH E ASSESSMENT YEAR 2009-10 VIDE ORDERS DATED 20 TH APRIL, 2015 , WHEREBY THE TRIBUNAL HELD AS UNDER:- THE SOLITARY ISSUE URGED IN THE APPEAL FILED BY TH E ASSESSEE IS WHETHER THE LD CIT(A) WAS JUSTIFIED IN UPHOLDING THE ADDITION OF REPAIRS AND MAINTENANCE EXPENSES OF RS.19,12,723/- BY TREATING THE SAME AS CAPITAL EXPE NDITURE. ITA 117/MUM/2015 7 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. TH E LD A.R INVITED OUR ATTENTION TO PAGE NO.6 OF THE PAPER BOOK AND SUBMITTED THAT T HE EXPENDITURE OF RS.19,12,723/- WAS INCURRED ONLY TO REPAIR AND MAINTAIN THE EXISTI NG BUILDINGS. THE NATURE OF EXPENSES INCURRED BY THE ASSESSEE ARE GIVEN IN PAGE NO.6 AS UNDER:- EVERGREEN ENGINEERING CO. PVT. LTD. PAN: AAACE2499L ASSESSMENT YEAR: 2009-1 0 DETAILS OF BUILDING REPAIRS & MAINTENANCE PAYMENTS TO M/S PRABHU CONSTRUCTIONS SR.NO. DATE BILL NO. PARTICULARS RS. RS. I II 16/04/2008 16/04/2008 24/05/2008 15/09/2008 29/10/2008 6 7 5 14 26 FACTORY BUILDING (UNIT-I) AT ANDHERI (EAST) (21389 SQ. FT) PLOT NO.B-35, MAHAL INDUSTRIAL ESTATE, MAHAKALI CAVES ROAD, GUNDAVLI, ANDHERI (EAST), MUMBAI - 400093 (YR 1971-72) REPAIRS & REPLACEMENT OF COTA FLOORING & POLISHING OF 1742.50 SQ FT WORK OF TERRACE WATER PROOFING 3041.56 SQ FT. TILES FLOORING, POLISHING, STRUCTURE WITH CONCRETE, BRICKS MASONARY PLASTER, REPLACEMENT OF SINTEX TANK OF CANTEEN TERRACE ETC. POLISHING STAIR CASE, MASOSARY, COTA FLOORING, WHITE WASH, PAINTING ETC REPAIR & REPLACEMENT FOR WELDING DEPARTMENT, TERRACE, DEMOLISHING & CONCRETE WORK 700 SQ FT, PLASTERING 15681 SQ FT, COTA FLOORING 1556 SQ FT, REPLACEMENT OF TILES 197.04 SQ FT ETC. FACTORY BUILDING (UNIT-II) AT RANGE OFFICE. VASAI (E) (PLOT AREA 8135 SQ FT - BUILT UP AREA 3468.27 SQ FT) PLOT NO. 3, SETH ATMARAM SHAH ROAD, NEAR RANGE OFFICE, VILLAGE - GOKHIWARE, TALUKA - VASAI, DIST. -THANE (YR 1997-98) 143,869 387,546 105,595 139,760 156,667 933,437 ITA 117/MUM/2015 8 III 04/05/2008 03/09/2008 20/06/2008 04/09/2008 1/12/2008 1/12/2008 28/01/2009 05/03/2009 9 12 10 13 27 28 38 44 REPLACEMENT OF FLOORING 2200 SQ FT & PLASTERING 43 SQ FT.CONCRETING REPLACEMENT OF PVC NALA PIPES, TAL PATRI, PLUMBING FITTING, DAMBER FILLING, SHUTTER REPAIRING RCC DEMOLISHING, BRICKS MASONARY, PLASTERING, PARTITIONS, WELDING FACTORY BUILDING (UNIT- V) AT CHINCHPADA, VASAI (E)(28328.20 SQ FT) PLOT NO. 9, 10, 16 & 17, CHINCHPADA, VILLAGE - GOKHIWARE, TALUKA - VASAI, DIST. - THANE (YR 2004-05) DEMOLISHING, CONCRETE FINISH, TILES FLOORING, WHITE WASH,ETC DEMOLISHING CONCRETE, WALL DEMOLISHING, RUBBER REMOVING, SOIL EXCAVATION, CASTING, TILING , PLUMBING FITTING, PAINTING ETC FABRICATION WORK: REPLACING OLD CHANNELS PLATE REMOVED AND ON OLD STRUCTURE CHEQUERED PLATE FIXING, WELDING, GROUTING ETC . PAINTING & CIVIL WORK - SANDTEX PAINTING RUNNING SQ FT 18596.32, OIL PAINT 470.82 SQ FT, PLASTERING, PLASTER CHIPPING, FLOOR REPAIRING , WHITE WASH ETC. PLASTERING, CONCRETE, PLUMBING, PAINTING SANDTEX, WHITE WASH, PAINTING MAIN GATE, OIL PAINT ETC TOTAL 188,234 50,086 110,348 67,491 96,045 125,761 226,351 114,971 348,667 630,619 1,912,723 3. A PERUSAL OF THE ABOVE SAID EXPENDITURE WOULD SH OW THAT THERE IS MERIT IN THE SUBMISSIONS OF THE ASSESSEE. THOUGH THE LD D.R STR ONGLY DEFENDED THE ORDER OF LD CIT(A), YET WE ARE CONVINCED THAT THE ASSESSEE HAS INCURRED THE IMPUGNED EXPENSES ON REPAIR AND MAINTENANCE OF THE EXISTING BUILDING BY REPLACING FLOORING AND CARRYING OUT OTHER WORKS. ACCORDINGLY, WE ARE OF THE VIEW T HAT THE IMPUGNED EXPENDITURE CANNOT BE IN THE NATURE OF CAPITAL EXPENDITURE IN T HE ABSENCE OF CREATION OF ANY NEW ITA 117/MUM/2015 9 ASSET OF ENDURING NATURE. ACCORDINGLY, WE SET ASID E THE ORDER OF LD CIT(A) AND DIRECT THE ASSESSING OFFICER TO ALLOW THE IMPUGNED EXPENDI TURE AS REVENUE EXPENDITURE. CONSEQUENT ADJUSTMENT SHALL ALSO BE MADE WITH REGAR D TO THE DEPRECIATION ALLOWED BY THE ASSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS ALLOWED. RESPECTFULLY FOLLOWING THE ORDER OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO . 1185/MUM/2013 VIDE ORDERS DATED 24-04- 2015 FOR THE PRECEDING ASSESSMENT YEAR 2009-10 , WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE HAS INCURRED EXPENSES IN THE NATURE OF CURRENT REPAIRS U/S 30 OF THE ACT AND HENCE THE SAME CANNOT BE TREA TED AS CAPITAL EXPENDITURE IN THE ABSENCE OF CREATION OF ANY NEW A SSET OF ENDURING NATURE AND HOLD THEM TO BE REVENUE EXPENDITURE . HOWEVER, CONSEQUENTLY THE DEPRECIATION ALLOWED BY THE REVENUE SHALL BE ADJUST ED ACCORDINGLY IN ACCORDANCE WITH OUR ABOVE ORDERS. WE ORDER ACCORDIN GLY . 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 117/MUM/2015 FOR THE ASSESSMENT YEAR 2010-11 IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2016. # $% &' 31-10-2016 ( ) SD/- SD/- (AMIT SHUKLA) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER $ MUMBAI ; & DATED 31-10-2016 [ .9../ R.K. R.K. R.K. R.K. , EX. SR. PS ITA 117/MUM/2015 10 !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. : ( ) / THE CIT(A)- CONCERNED, MUMBAI 4. : / CIT- CONCERNED, MUMBAI 5. =>( 99?@ , ?@ , $ / DR, ITAT, MUMBAI I BENCH 6. (BC D / GUARD FILE. / BY ORDER, = 9 //TRUE COPY// / ( DY./ASSTT. REGISTRAR) , $ / ITAT, MUMBAI