2012 (3) TMI 488

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.... the CIT(A) has erred in deleting the addition of Rs. 56,57,120/- made by the AO on account of "disallowance of repair and maintenance expenses". 3. On the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 18,09,618/- made by the AO on account of "disallowance of depreciation on furniture, fixture and plant and machinery." 4. On the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 23,14,444/- made by the AO on account of "disallowance u/s 14A of the I.T. Act, read with Rule 8D of the I.T. Act." 2. Ground No. 1 is general. 3. Apropos Ground Nos. 2&3, the Department has contended that the ld. CIT(A) has erred in delet....

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....g 25% mark up over certain expenses agreed upon between the parties/partners was to be paid by Remfry & Sagar to the assessee. The assessee gave details of the total expenses of Rs. 1,22,41,728/-, which amount had been debited in the profit and loss account. The assessee's expenses were of Rs. 25,61,586/- and those concerning consultancy fee were of Rs. 96,80,142/-, including legal and professional and consultancy charges, remuneration and benefits, travelling (foreign as well as domestic travel), communication, electricity charges, vehicle expenses and repairs and maintenance of building let out and expenses on furniture and fixtures, repair on computers, electric items, etc., all the said items having been provided to Remfry & Sagar by th....

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....ed that there was no separate claim of repair and maintenance and depreciation by the assessee. The reimbursement and 25% mark up had already been offered by the assessee to tax. The reimbursements have been found on deductions claimed in the profit and loss account on account of repair and maintenance of building, furniture and depreciation claimed on computers, furniture and fixtures, vehicles and office equipment provided to Remfry & Sagar for use. The AO was, as such, in error to hold that it was a case of double deduction. The ld. CIT(A) also took specific note of the fact that as per clause (6)(b) of the Rent Agreement, the reimbursement for repair and maintenance as well as electricity, power expenses, etc. had to be made to the asse....