2015 (10) TMI 170

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....penses treating the same as capital in nature. The appellant prays that disallowance of Rs. 2,50,638/- out of electrical replacement be deleted. 2. The learned Commissioner of Income Tax (Appeals) has disallowed an amount of Rs. 9,04,085/- out of repairs and renewal expenses treating the same as capital in nature. The appellant prays that disallowance of Rs. 9,04,085/- out of repairs and renewal expenses be deleted. 3. The appellant preys leave to submit detailed submission on the Grounds of Appeal at the time of hearing. 4. The appellant prays to add, amend, alter and to modify any or all the Grounds of Appeal to meet justice and equity. 3. The grounds of appeal No.1 and 2 raised by the assessee are in relation to the treatment of repa....

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.... benefit to the assessee, then the same was to be considered as capital expenses. 6. The assessee is in appeal before us against the said disallowance of Rs. 2,50,638/-. The learned Authorized Representative for the assessee drew our attention to the list of expenditure booked under the head 'electrical replacement' placed at page 8 of the Paper Book and pointed out that the major expenditure during the year under consideration was on replacement of the electrical cable as the hospital run by the assessee was very old and major repairs were carried out by the assessee. The learned Authorized Representative further pointed out that out of the total expenditure, expenses totaling Rs. 22,400/- were capital in nature and the balance expenditur....

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....etal Duet of measuring 463 sq.ft. for Rs. 50,000/-. Another bill totaling Rs. 18,260/- is in respect of Sommer Cable Quantam 8 Core and Amphenol Connector AC 3 MM and AC 3 FD 2 vide invoice No.138, dated 16.06.2008 from S.U.N. Media Ventures Pvt. Ltd. The perusal of the details in the bills filed by the assessee does not justify the disallowance made in the hands of the assessee merely because the bills total more than Rs. 10,000/-. It is the nature of the expenditure which has to be considered while allowing the expenditure in the hands of the assessee. We find merit in the plea of the assessee that the expenditure incurred by the assessee is on account of repairs and renewals carried out at his business premises and are in the nature of c....

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....against the order of CIT(A). The learned Authorized Representative for the assessee made a reference to the tabulated details filed at pages 22 and 23 of the Paper Book, under which, the nature of expenditure had been explained and also bifurcated between capital and revenue expenses. 11. The learned Departmental Representative for the Revenue placed reliance on the orders of the authorities below. 12. We have heard the rival contentions and perused the record. The expenditure booked under the head 'repairs and renewals' was claimed as revenue expenditure by the assessee totaling Rs. 11,71,359/-. The Assessing Officer however, picked up the bills exceeding Rs. 10,000/- and held the same to be capital in nature. The assessee has enclosed t....