, IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.1411 AND 1412/AHD/2015 / ASSTT. YEAR: 2010-2011 AND 2011-12 UNIMED TECHNOLOGIES LTD. BASKA, BASKA UJETI ROAD UJETI, HALOL DIST. PANCH MAHAL GUJARAT 389 350 PAN : AAACE 4022 B VS DCIT, CENT.CIR.1 BARODA (NOW ACIT, CIR.2(1)(1) BARODA. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : MS.URVASHI SHODHAN, AR REVENUE BY : SHRI MUDIT NAGPAL, SR.DR / DATE OF HEARING : 24/08/2017 / DATE OF PRONOUNCEMENT: 07/09/2017 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT TWO APPEALS ARE DIRECTED AT THE INSTANCE OF THE ASSESSEE AGAINST COMMON ORDER OF THE LD.CIT(A) DATED 27.3.2015 PASSE D FOR THE ASSTT.YEARS 2010-11 & 2011-12. 2. IN THE FIRST FOLD OF GRIEVANCE THE ASSESSEE HAS PLEADED THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS.4,30 ,414/- AND RS.4,98,900/- DEBITED BY THE ASSESSEE AS REPAIRS AND MAINTENANCE IN THE ASSTT.YEARS 2010-11 AND 2011-12 RESPECTIVELY. ITA NO.1411 AND 1422/AHD/2015 2 3. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. IT EMERGES OUT FROM THE RECORD TH AT THE ASSESSEE HAS CARRIED OUT ROUTINE REPAIRS AND DEBITED VARIOUS EXPENDITURE UNDER THE HEAD REPAIRS AND MAINTENANCE. THE LD.AO HAS DISALLOWED THOSE E XPENDITURE BY TREATING THEM AS CAPITAL EXPENDITURE. ON APPEAL, THE LD.CIT (A) CONFIRMED SUCH DISALLOWANCE IN BOTH THE YEARS. 4. WHILE GOING THROUGH THE ORDER OF THE LD.CIT(A) W E HAVE NOTICED THE DETAILS SUBMITTED BY THE ASSESSEE IN TABULAR FORM E XHIBITING ITEMS PURCHASED BY IT, PARTY FROM WHOM SUCH PURCHASES WAS MADE; DES CRIPTION OF NATURE OF ITEMS PURCHASED AND THE AMOUNT. SUCH DETAILS HAVE BEEN REPRODUCED FOR THE ASSTT.YEAR 2010-11 ON PAGE NO.4 OF THE IMPUGNED ORD ER, WHICH READS AS UNDER: ST. NO NOME OF PARTY ITEMS PURCHASED DESCRIPTION OF NATURE OF ITEMS PURCHASED AMOUNT (RS.) 1. PERFECT ENGINEERING WORKS PURCHASE OF SPARES (METAL SYRINGES) PROPER MAINTENANCE & UPKEEP OF THE MACHINE 63.302 2. BHOLANATH ENGINEERING WORKS 12 TRAYS FOR AMPOULE WASHING MACHINE TO REMOVE THE DEFECT OF THE DAMAGED PORTION OF EXISTING MACHINE 37,195 3. JAY INTERIORS CALCIUM SILICAT BOARD PARTITION FOR FALSE CEILING TO IMPROVE THE EFFICIENCY OF THE WORKING PLACE BY THE WORKERS 40,017 4. TOSHVIN ANALYTICAL PVT. LTD. PURCHASE OF SPARES FOR LABORATORY EQUIPMENTS RECURRING NATURE AND USABLE FOR 6 TO 8 MONTHS ONLY 47,175 5. AJNI CLEAN ROOMS PVT LTD. ALUMINIUM MODULAR DOUBLE MATERIAL/FURNITURE FOR PARTITION OF CABINS AND FLUSH DOORS IT CAN BE REMOVED AND TRANSFERRED TO THE OTHER AREA. LEADS TO BETTER VISIBILITY AND CONTROL OF THE WORKERS 69,313 ITA NO.1411 AND 1422/AHD/2015 3 6. AJNI CLEAN ROOMS PVT. LTD. ALUMINIUM MODULAR DOUBLE SKIN MATERIAL/FURNITURE FOR PARTITION OF CABINS AND FLUSH DOORS SAME AS ABOVE 1,07,129 7. SYSTEMS INC ACCESS CONTROLLER CARDS DOOR ACCESS CONTROLLER PROXIMITY CARDS , ACCESS CONTROL CARD & CABLE ETC, WHICH ARE FOR PROPER UPKEEP & MAINTENANCE IN FACTOR. ' 66,283 TOTAL 4,30,414 5. THE FACTS IN ASSTT.YEAR 2011-12 ARE ALSO SIMILAR . THE LD.REVENUE AUTHORITIES ARE OF THE OPINION THAT THESE REPAIRS W OULD GIVE ENDURING BENEFIT TO THE ASSESSEE, AND THEREFORE, EXPENDITURE DESERVES T O BE CAPITALIZED. AFTER GOING THROUGH THE DETAILS OF ITEMS PURCHASED BY THE ASSESSEE EXTRACTED (SUPRA), WE ARE OF THE VIEW THAT THESE ARE ROUTINE REPAIRS C ARRIED OUT BY THE ASSESSEE ON ITS EXISTING BUSINESS AND NO NEW ASSETS CAME INTO E XISTENCE. THE ASSESSEE HAS MERELY REMOVED DEFECTIVE PARTS AND REPLACED IT WITH NEW PARTS. THE REVENUE AUTHORITIES OUGHT NOT TO HAVE TREATED THESE REPAIRS AS CAPITAL EXPENDITURE OF ENDURING BENEFIT TO THE ASSESSEE. THEREFORE, WE AL LOW FIRST FOLD OF GRIEVANCE RAISED BY THE ASSESSEE. 6. IN THE NEXT FOLD OF GRIEVANCE THE ASSESSEE HAS P LEADED THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE CHARGING OF I NTEREST UNDER SECTION 234A OF THE INCOME TAX ACT, 1961. IT IS PLEADED THAT RET URN WAS FILED WITHIN THE TIME BECAUSE THE TIME FOR FILING THE RETURN OF INCO ME WAS ENHANCED BY THE CBDT VIDE CIRCULAR NO.225/2010 DATED 27.9.2010, HEN CE INTEREST UNDER SECTION 234A IS NOT CHARGEABLE UPON THE ASSESSEE. THIS FACT HAS NOT BEEN VERIFIED OR CONSIDERED BY EITHER OF THE REVENUE AUT HORITIES. THEREFORE, WE REMIT THIS ISSUE TO THE FILE OF THE AO FOR RE-ADJUD ICATION ON MERIT. THE LD.AO SHALL NOT TREAT THAT THE CHARGING OF INTEREST AS CO NSEQUENTIAL, RATHER HE WILL ITA NO.1411 AND 1422/AHD/2015 4 DEMONSTRATE HOW THE INTEREST IS CHARGEABLE UPON THE ASSESSEE, AND THEREAFTER CHARGE THE INTEREST, IF ANY. 7. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE A LLOWED. ORDER PRONOUNCED IN THE COURT ON 07 TH SEPTEMBER, 2017 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER