TaxTMI 
TaxTMI 
2014 (1) TMI 863
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....sing of various expenses of business as being capital nature. 2. The disallowance on account of donation of Rs.15,000 as confirmed by the learned Commissioner of Income Tax(A) is incorrect. 3. The consequential relief in interest u/s 234A, 234B and 234C may please be granted." 3. Briefly stated the facts giving rise to this appeal are that the assessment was completed u/s 143(3) of the Income Tax Act, 1961 (for short the Act) after making additions pertaining to repair and maintenance amounting to Rs.44,76,042/- and another addition pertaining to donation of Rs.15,000. Being aggrieved by the above assessment order, the assessee filed first appeal before the Commissioner of Income Tax(A) which was partly allowed granting some relief to th....
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....placement of the door from ordinary door to automatic because the ordinary door had started breaking down often causing hurdles and problems in the kitchen services. The counsel also contended that provision for Hyperion Software and for I Cap Software was made based on the cost estimate received and the same were reversed by crediting the P&L account in the subsequent year 2008-09 with the same amounts. The counsel pointing out the detailed working in this regard submitted that expenses related to Milnor/Washer Extractor, that the cost of installation, mobile radio and DVD player are of revenue nature because these are not bringing any benefit of enduring nature to the assessee and these expenses have been made to maintain the efficiency o....
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....and revenue has no grievance in this regard because the necessary accounting entries have been made in the subsequent financial year. The DR further submitted that the replacement of old door to automation system equipped door and installation of washer extractor, mobile radio and DVD players are the expenses of enduring nature which cannot be considered as revenue in nature. Therefore, the authorities below rightly made additions. The DR supported the orders of the authorities below and submitted that the appeal of the assessee is baseless and devoid of merits. 7. After careful consideration of rival submissions and perusal of record, at the outset, we observe that admittedly, the assessee company is operating Five Star Hotels in Delhi, M....
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....at these expenses are capital in nature. Per contra, after a careful consideration of all facts and circumstances of the case, we are of the view that the impugned additions made by the Assessing Officer and partly confirmed by the Commissioner of Income Tax(A) are revenue in nature because these expenditures are not bringing any enduring benefit or enhancement of earning capacity of the assessee and, on the other hand, these expenditures have been made to maintain day to day efficiency of the hotel units of the assessee which are necessary to maintain dignified services to the guests. 10. In view of above, we hold that the authorities below ignored a basic fact that the assessee is operating Five Star Hotel and it is bound to maintain goo....
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....tion and again the Commissioner of Income Tax(A) confirmed the addition on erroneous observations and findings. Ld. counsel submitted that the assessee cannot be denied claim on account of donation and the addition made in this regard may be deleted. 14. Ld. DR submitted that the addition in this regard was made by the Assessing Officer and confirmed by the Commissioner of Income Tax(A) as no documentary evidence was produced by the assessee in this regard, therefore, deduction u/s 80G of the Act could not be given to the assessee. The DR supported the findings of the authorities below. 15. After careful consideration of above submissions, we observe that in reply to our specific query, counsel for the assessee fairly conceded that no doc....