2015 (6) TMI 883

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....d maintenance expenses treated by the Assessing Officer (AO) as capital expenditure. Succinctly, the AO, during the course of assessment proceedings, observed that a sum of Rs. 30,40,193 was claimed as deduction, which was, in fact, on account of purchase of 'Plant and machinery' as under:- Bill Date Vendor Amount Items 11.01.2008 Cimbali SPA Rs.2793683.23 LA Cimbali Coffee machine Junior grinder silver & LA Cimbali Inoxba TUV coffee grinders.   Cimbali SPA Rs.121237.62     Cimbali SPA Rs.125271.95   Total   Rs.30,40,193/     3. As the assessee is engaged in the business of Coffee bars, the AO opined that the Coffee machines and coffee grind....

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....verify the view canvassed by the assessee before the ld. CIT(A) in arguing that this amount was, in fact, capitalized for the purposes of claiming depreciation. If such a claim is found to be correct, then, of course, there cannot be any question of making addition for Rs. 28.12 lac. If, on the other hand, the sum of Rs. 30.40 lac is found to have been claimed as revenue expenditure, then, the addition of Rs. 28.12 lac be restored, inasmuch as the expenditure incurred towards coffee machines and coffee grinders is otherwise a capital expenditure, being a profit earning apparatus of the assessee. 5. The first ground of the assessee's cross objection is against the confirmation of addition of Rs. 18,207/- u/s 43B of the Act. During the cou....

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....5,992/- for Pizza and dinners, etc. Staff welfare expenses amounting to Rs. 19,55,074/- included personal expenses of Shri Partha Dutta Gupta amounting to Rs. 42,378/-. The AO made total addition of Rs. 3,37,784/- by treating such total amount, including a sum of Rs. 88,370/-, as personal expenses u/s 37(1) of the Act. The assessee is aggrieved against the ld. CIT(A) sustaining the addition to the extent of Rs. 88,370/- comprising two amounts, namely, Rs. 45,992/- and Rs. 42,378/-. 7. After considering the rival submissions and perusing the relevant material on record, it is found that the assessee is a limited company. There is no dearth of judicial precedents holding that there cannot be any disallowance of expenses in the hands of com....