https://www.taxtmi.com/caselaws?id=456389 The Gujarat HC ruled in favor of the assessee on multiple tax issues. The court held that expenditure on repairs, plastering, flooring, electrical fittings, and plumbing for a leased property constituted revenue expenditure rather than capital expenditure, as it preserved and maintained an existing unit without affecting fixed capital. The HC confirmed ITAT's deletion of addition under section 40(a)(ia), noting similar disallowances were previously deleted and attained finality. Regarding transfer pricing adjustment for guarantee commission, the court upheld ITAT's deletion of the addition, finding the 0.75% guarantee commission justified as total borrowing cost remained lower than bank's quoted rate, and assessee's operating margin exceeded comparable companies. en-us Mon, 23 Jul 2018 00:00:00 +0530 Mon, 22 Jul 2024 20:36:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456389 The Gujarat HC ruled in favor of the assessee on multiple tax issues. The court held that expenditure on repairs, plastering, flooring, electrical fittings, and plumbing for a leased property constituted revenue expenditure rather than capital expenditure, as it preserved and maintained an existing unit without affecting fixed capital. The HC confirmed ITAT's deletion of addition under section 40(a)(ia), noting similar disallowances were previously deleted and attained finality. Regarding transfer pricing adjustment for guarantee commission, the court upheld ITAT's deletion of the addition, finding the 0.75% guarantee commission justified as total borrowing cost remained lower than bank's quoted rate, and assessee's operating margin exceeded comparable companies. Case-Laws Income Tax Mon, 23 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456389