NUAIRE ENGINEERS P. LTD, MUMBAI V. ITO 9(2)(3), MUMBAI

ITA 6422/MUM/2010

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3007 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 25-06-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 31-08-2010
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Keywords: Capital expenditure

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ./ ITA NO. 6422 /MUM/201 0 ( / ASSESSMENT YEAR : 200 5 - 2006 ) M/S NUA IRE ENGINEERS PVT. LTD., 47, VIKAS CENTRE, S.V.ROAD, SANTACRUZ(W), MUMBAI - 400054 VS. ITO - 9(2)(3), MUMBAI - 20 ./ ./ PAN/GIR NO. : A A ACN 0274 G ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : MS. NEELAM JADHAV /REVENUE BY : SHRI NEIL PHILIP / DATE OF HEARING : 21 / 0 7 /201 6 / DATE OF PRONOUNCEMENT 16/09 /201 6 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - MUMBAI, FOR THE ASSESSMENT YEAR S 2005 - 06 . 2 . THERE IS A MARGINAL DELAY IN FILING THE APPEAL. AS THE REASONS STATED FOR DELAY WAS FOUND TO BE GENUINE, WE CONDONE DELAY OF 43 DAYS IN FILING APPEAL AND APPEAL IS HEARD ON MERIT. 3 . GROUND NO.1 RELATES TO SUSTAINING ADDITION OF RS.43,726/ - AS CAPITAL EXPENDITURE ON ACCOUNT OF VEHICLE REGISTRATION CHARGES. 4 . WE FOUND THAT AMOUNT WAS PAID FO R REGISTRATION OF VEHICLE AND ALSO INCLUDING ROAD TAX. NO NEW ASSET HAS COME INTO EXISTENCE BY PAYMENT OF REGISTRATION CHARGES. ACCORDINGLY, WE DIRECT THE AO TO ALLOW ASSESSEES CLAIM FOR DEDUCTION OF REGISTRATION CHARGES AS REVENUE EXPENSES. 5 . GROUND NO. 2 RELATES TO DISALLOWANCE OF CAPITAL EXPENDITURE FOR I NCREASE IN SHARE CAPITAL. ITA NO. 6422 /1 0 2 6 . THE ISSUE IS COVERED AGAINST THE ASSESSEE BY THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF PUNJAB STATE INDUSTRIAL CORPORATION, 225 ITR 792. ACCORDINGLY, WE DO NOT FI ND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR DISALLOWANCE OF THESE EXPENDITURE. 7 . GROUND NO.3 PERTAINS TO DISALLOWANCE OF EXPENDITURE OF RS.2,25,000/ - INCURRED ON ACCOUNT OF STAMP DUTY CHARGES PAID TO ROC FOR INCREASE IN SHARE CAPITAL. IN VIEW OF THE DECIS ION OF HONBLE SUPREME COURT IN THE CASE OF PUNJAB STATE INDUSTRIAL CORPORATION (SUPRA) , WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF LOWER AUTHORITIES. ACCORDINGLY, WE CONFIRM THE DISALLOWANCE. 8 . THE LAST GRIEVANCE OF THE ASSESSEE RELATES TO S USTAINING THE ADDITION OF RS. 58,613/ - PAID TOWARDS PF DUES. WE FOUND THAT AMOUNT WAS PAID BEFORE LAST DATE OF FILING OF RETURN OF INCOME. ACCORDINGLY, DISALLOWANCE OF RS.58,631/ - WAS NOT JUSTIFIED. WE DIRECT THE AO TO ALLOW THE SAME. 9 . IN THE RESULT, APPE AL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 16/09 /201 6 . SD/ - ( SANDEEP GOSAIN ) SD/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 16/09 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//