TaxTMI 
TaxTMI 
2016 (7) TMI 509
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....8/- without considering the fact that the husband is neither an employee nor a partner in the business of the assessee. Merely being an authorized signatory, does not make him entitled for claiming expenses in the business". 2. On the facts and in the circumstances of the case, Ld. CIT(A) has erred in deleting the additions Rs. 32,24,345/- treated the repair expenses as the revenue expenses of three lease shops. The assessee incurred expenses on repair and maintenance opened three new more shops on tenanted premises. The assessee intentionally included the capital expenditure as revenue expenditure in the P&L A/c to suppress the net profit. 3. On the facts and in the circumstances of the case, Id.CIT (A) has erred in deleting addition....
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....y the Ld. CIT(A), and hence revenue has preferred this appeal. The ground wise disposal of appeal is as under :- 3. Ground No. 1 the first ground of appeal is against deletion of disallowance of Rs. 1,50,419/- being 50% of travelling expenditure incurred by the assessee. The assessee has incurred total travelling expenditure of Rs. 3,00,838/- and out of which 50% of those expenditure were disallowed by the AO on the ground that it includes travel by assessee and her husband. Ld. CIT(A) deleted this disallowance for the reason that the husband of the assessee is also actively involved in running the business of the appellant and is authorised signatory of the proprietary concern. Ld. AR submitted that during the year, there were also open....
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....of such expenditure comes to Rs. 113914/-. In view of this, we dismiss ground No. 1 of appeal of the revenue. 5. Ground No. 2 of the appeal of the revenue is against deletion of disallowance of Rs. 32,24,435/- being repairs and maintenance of three new shops. During the year, assessee has set up three new shops at Khar, Mumbai, Emporio, Delhi and at Jodhpur. For setting up of these shops it is incurred certain expenditure and claimed the same as repair expenditure. AO has held that all these expenditure towards repairs and maintenance are to be treated as capital expenditure because new assets for new showrooms are created. He also held that the new shops are opened and expenses are incurred before commencement of business and as these e....
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....roverted by the revenue. According to the provisions of section 30 (a)(ii) any expenditure on repairs and maintenance of the premises not owned by the assessee are allowable as deduction . Ld. CIT(A) has categorically held that expenditure towards electrical work, wooden flooring, AC fittings and other professional charges, which are of revenue nature and no advantage of enduring nature, has been obtained by the assessee as these are routine expenditure. On verification of expenditure by CIT (A), he has deleted the disallowance. Revenue did not controvert or could not point out specifically any expenditure resulting in to capital assets. In view of this we do not find any infirmity in the order of the Ld. CIT(A) and we confirm the order of ....
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....e assesee has also made payment to the job workers by cheques. Ld. CIT(A) further following the decision of Hon'ble Jurisdictional High Court in the case of CIT vs. Jas Jack Elegance Exports (2010) 191 Taxman 386 deleted the addition. Therefore, revenue is in appeal before us. Ld. DR relied on the order of the AO and submitted that there is a significant downfall in the gross profit compared to the previous year and therefore the AO has rightly made the addition. Ld. AR on the other hand relied on the same arguments, which were made before the lower authorities. Regarding the job work charges it was submitted that out of the four parties 2 parties responded to the notice u/s 133(6) of the Act and only two parties did not respond and therefo....