ACIT, New Delhi V. M/s. Uday Management Services Pvt. Ltd., New Delhi

ITA 4709/DEL/2011

• Counselvise Citation: 470920114 RSA 2011
• Duration Of Justice: 2 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 31-03-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 28-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAGAN SOOD SENIOR
• Assessee Lawyers: SUNIL GOEL; SUHEL GOEL
• Keywords: Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H : NEW DELHI) BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.4709/DEL./2011 (ASSESSMENT YEAR : 2008-09) ACIT, CIRCLE 18 (1), VS. M/S. UDAY MANAGEMENT SERV ICES PVT. LTD., NEW DELHI. IBC, M 38/1, MIDDLE CIRCLE, CONNAUG HT PLACE, NEW DELHI 110 001. (PAN : AAACU1484B) (APPELLANT) (RESPONDENT) ASSESSEE BY : S/SHRI SUNIL GOEL & SUHEL GOEL, FCA REVENUE BY : SHRI GAGAN SOOD, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF CIT (A)- XXI, NEW DELHI DATED 04.08.2011 FOR THE ASSESSMENT YEAR 2008-09. 2. DURING THE YEAR, THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF PROVIDING SERVICES. THE ASSESSEE HAS DEBITED REPAIRS AND MAI NTENANCE OF RS.53,38,172/- OUT OF WHICH ON BUILDING REPAIRING WAS OF RS.32,08, 947/-. THE SAME WAS DISALLOWED BY THE ASSESSING OFFICER. THE CIT (A) H AS GRANTED THE RELIEF BY HOLDING AS UNDER :- 3.3 IN THIS REGARD LD. AR HAS ALSO SUBMITTED COPY OF SCRUTINY ASSESSMENT FOR ASSESSMENT YEARS 2004-05, 2005-06 AN D 2006- 07, WHEREIN, NO ADDITION HAS BEEN MADE ON THIS ACCO UNT. I HAVE COMPARED THE FIGURES OF THE REPAIR AND MAINTENANCE ON ACCOUNT ITA NO.4709/DEL./2011 2 BUILDING FROM ASSESSMENT YEAR 2006-07, WHEREIN, REP AIR AND MAINTENANCE EXPENDITURE WAS FOUND TO THE TUNE OF RS .24.31 LACS. FURTHERMORE, AO HAS MADE DISALLOWANCE IN VERY ARBITRARY MANNER WITHOUT ASSIGNING ANY COGENT REASON IN THIS REGARD. WHILE VERIFYING LEDGER ACCOUNT FOR THE PERIOD 1.4.2 007 TO 31.3.2008, I HAVE FOUND THAT THEN ARE VERY PETTY EX PENSES INCURRED; LIKE PAYMENT TO CARPENTER, PLUMBER ETC. S O, AFTER GOING THROUGH THE LEDGER ACCOUNT AND BILL SUBMITTED .BY LD. AR IN THIS REGARD, THE EXPENDITURE WAS FOUND TO BE REVENUE EXPENDITURE IN NATURE. THEREFORE, IN MY CONSIDERED OPINION ACTION OF THE AO MAKING ADDITION OF RS.32,08,947/- WAS FOUND TO BE TOTALLY MISCONCEIVED. GROUND NO.1 IS ALLOWED IN FAVOUR OF THE APPELLANT. 3. WE HAVE HEARD BOTH THE SIDES. THE LD. DR WAS UN ABLE TO DISLODGE THE FINDING GIVEN BY THE CIT (A) THAT THESE EXPENSES WE RE VERY PETTY AND INCURRED FOR PAYMENT TO CARPENTERS, PLUMBERS, ETC. AND ALSO HE HAS GONE THROUGH LEDGER ACCOUNT AND BILLS SUBMITTED BEFORE HIM AND THE EXPE NDITURE WAS FOUND TO BE REVENUE IN NATURE. IN ABSENCE OF ANY CONTRARY MATE RIAL OR EVIDENCE, IT SHALL NOT BE POSSIBLE TO REVERSE THESE SPECIFIC FINDINGS GIVEN BY CIT (A). IN VIEW OF THESE FACTS, WE FIND NO FAULT IN THE ORDER OF CI T (A) AND WE DISMISS THIS REVENUES APPEAL. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 31 ST DAY OF MARCH, 2014. SD/- SD/- (I.C. SUDHIR) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 31 ST DAY OF MARCH, 2014 TS ITA NO.4709/DEL./2011 3 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A) XXI, NEW DELHI 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.