TaxTMI 
TaxTMI 
1994 (6) TMI 38
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....s. On appeal before the CIT(A) the assessee did not succeed. According to the CIT(A), the service charges paid to Chartered Bank are for financial advisory services required by the assessee in respect of the company's plans for a long duration. This cannot be considered as a revenue expenditure since the company has derived benefit of enduring nature by the said advisory services. This has to be considered as an expenditure in the nature of capital expenditure. Hence, the disallowance made by the Assessing Officer was confirmed. The assessee is aggrieved. 3. Before us, the assessee has produced evidence in respect of the payment of Rs. 1,00,000 for the financial advisory services required by the assessee in respect of the company's plans....
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....State of Tamil Nadu and one in the State of Assam. The assessee has produced certain documents in support of its claim. It also relied on the decision India Cements Ltd. vs. CIT (1966) 60 ITR 52 (SC). In this case, the appellant obtained a loan of Rs. 40 lakhs from the Industrial Finance Corporation secured by a charge on its fixed assets. In connection therewith it spent a sum of Rs. 84,633 towards stamp duty, registration fee, lawyer's fees, etc., and claimed this amount as business expenditure. The Supreme Court held that the amount spent was not in the nature of capital expenditure and was laid out or expended wholly and exclusively for the purpose of the assessee's business and was therefore, allowable as a deduction under s. 10(2)(xv)....
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.... clubs cannot be treated as expenditure not connected with the assessee's business. Hence, we allow the claim of the assessee for deduction of Rs. 2,222. This point is found in favour of the assessee. 5. The last ground in this appeal is against the disallowance of royalty amounting to Rs. 2,500 paid by the assessee for collecting sand. The taxing authorities rejected the assessee's claim on the ground that the expenditure is in the nature of capital expenditure. The argument addressed before us is that even if it is a capital expenditure, the assessee is entitled to get depreciation. The assessee has not produced any evidence whatsoever to show that the royalty paid is of revenue nature. Hence, we agree with the CIT(A) to the extent tha....
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.... the assessee used by the employee. As the provision stands, it is not only the expenditure that will be affected by the ceiling limit prescribed but also allowances such as the depreciation allowance. In a case where the assessee claims depreciation allowance in respect of a building belonging to him which is occupied by an employee partly for his own benefit, the ceiling provisions and the permissible limit of the allowance would come into operation. The section means that the allowance in respect of the assets of the assessee used by the employee will be limited, along with other items of expenditure which may fall within the same provision, to the ceiling limit. The construction of the term "such employee" to mean an employee who is the....
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....of the total expenses on the cars used by the directors were for the purposes of business and 1/3rd related to the directors' personal purposes, only 1/3rd of the expenses could be considered for application of the limit as specified in s. 40(a)(v) and s. 40A(5) and that the Tribunal was not right in allowing the expenses incurred for the maintenance of the buildings beyond the limit specified in s. 40(a)(v) for the period when that provision was in force and the corresponding limit specified in s. 40A(5) for the years when that section was in force. Following the above decision with respect, we hold that the CIT(A) is not justified in directing the Assessing Officer to value the perquisite as per r. 3(c)(ii) of the IT Act. This point is fo....