Tribunal upholds appellate order dismissing revenue's challenge on repair expenses deletion.

The Tribunal upheld the first appellate order, dismissing the revenue's challenge regarding the deletion of Rs. 50,29,506/- for repair and maintenance expenses. The Tribunal found no fault in the decision and rejected the appeal, citing previous Tribunal decisions in favor of the assessee for the assessment year 2006-07. The order was issued on 26th October 2012.

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Issues involved: Impugned first appellate order deleting addition of Rs. 50,29,506/- for repair and maintenance expenses.

Summary:
The revenue challenged the first appellate order which deleted the addition of Rs. 50,29,506/- for repair and maintenance expenses. The assessee company had a license agreement with a partnership firm for office premises, declaring taxable rental income of Rs. 2,81,21,300/- after a 30% statutory deduction for repairs u/s 24 of the Income Tax Act, 1961. The AO disallowed Rs. 50,29,506/- of total repair and maintenance expenses, stating that further deduction for repairs is not allowable since 30% of license fees was claimed as deduction u/s 24. The assessee argued that expenses were reimbursed as per the agreement, not affecting the company's profit. The CIT(A) deleted the addition based on similar Tribunal decisions for the assessment year 2006-07.

The Tribunal upheld the first appellate order, citing a similar issue decided in favor of the assessee for the assessment year 2006-07. The Tribunal found no infirmity in the first appellate order and rejected the raised ground, resulting in the dismissal of the appeal.

The order was pronounced on 26th October, 2012.

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