DCIT, Hyderabad V. M/s GVK Industries Ltd., Hyderabad

ITA 1557/HYD/2008

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5877 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-03-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 16-10-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E S NAGENDRA PRASAD
• Assessee Lawyers: C N PRASAD
• Keywords: Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1557/HYD/2008 ASST. YEAR : 2005-06 DY. CIT, CIRCLE 2 (2), HYDERABAD VS M/S TAJ GVK HOTELS & RESORTS LTD., HYDERABAD (AABCT 2223 L) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI E.S. NAGENDRA PRASAD RESPONDENT BY: SHRI C.N. PRASAD O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A)-III DATED 14.8.2008 AND PERTAI NS TO THE ASSESSMENT YEAR 2005-06. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS: 1. THE CIT(A) OUGHT TO HAVE CONFIRMED THE ADDITIONS MA DE BY THE ASSESSING OFFICER. 2. THE CIT(A) OUGHT TO HAVE NOTICED THAT THE EXPENDITU RE OF RS.39,79,057/- WAS NOT IN THE NATURE OF CURRENT REP AIRS. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. IN THIS CASE, THE ASSESSEE HAS INCURRED EXPENDITURE AS FOLLOWS: 2 2 TAJ KRISHNA SUPPLY AND FIXING OF RTVP WINDOW SYSTEM OF GUEST ROOMS RS.13,06,023/- TAJ BANJARA REPLACEMENT OF DAMAGED FLOORING (PERGO FLOORING) R S.12,46,600/- TAJ DECCAN DHOLTURE STONE WORK AND GRANITE FIXING AT BANQUET LAWNS RS.14,26,434/- ----------------- RS.39,79,057/- ========= 4. WE HAVE GONE THROUGH THE DETAILS OF EXPENDITUR E INCURRED. IN OUR OPINION, THIS EXPENDITURE HAS NOT RESULTED IN ANY BENEFIT OF ENDURING NATURE. THESE ARE INCURRED BY THE ASSESSEE TO CA RRY ON ITS BUSINESS BY PROVIDING WINDOW SYSTEMS, REPLACEMENT OF DAMA GED FLOORING AND OTHER FACILITIES WHICH ARE REQUIRED TO BE INCURRED TO MAINTAIN THE GOOD QUALITY AND UP KEEPING OF THE STANDARDS OF T HE HOTELS. IN OUR OPINION, THIS EXPENDITURE IS TO BE ALLOWED AS REVENUE EXPENDITURE AND AS SUCH, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT : 12.3.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 12TH MARCH, 2010 3 3 COPY FORWARDED TO: 1. THE DY. CIT, CIRCLE 2 (2), HYDERABAD 2. M/S TAJ GVK HOTELS & RESORTS LTD., ROAD NO.1, BANJARA HILLS, HYDERABAD. 3. CIT(A)- III, HYDERABAD. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP