2016 (9) TMI 854

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....M: This appeal by the assessee arises out of the order passed by the CIT(A) on 27.01.2014 in relation to the assessment year 2005-06. 2. The first issue involved in this appeal is against the confirmation of addition of Rs. 1,95,320/-, being legal and professional expenses incurred in relation to shares buy back. 3. Briefly stated, the facts of this ground are that the assessee claimed de....

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....ts of the instant case, it is observed that the disallowance of expenditure of Rs. 1,95,320/- sustained in the first appeal relates to buy back of shares. The Hon'ble Supreme Court in Punjab State Industrial Development Corporation (supra) has held that the expenses incurred in that connection still retain the character of a capital expenditure since the expenditure is directly related to the expa....

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....es were incurred for renovation of building. The AO treated this amount as capital expenditure and disallowed the same. The ld. CIT(A) upheld the disallowance. 8. After hearing the ld. DR and perusing the relevant material, it is observed that the assessee incurred expenses of Rs. 8,28,304/- on a rented premises. Such expenses are in the nature of renovation of building. The Hon'ble Supreme Cou....

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.... held that such amount was not in the nature of current repairs but a capital expenditure not deductible in full. We thus reject the viewpoint of the assessee of such an expense being of revenue nature. 9. Explanation 1 to section 32 provides that where the business is carried on in a building not owned by the assessee, but in respect of which the assessee holds a lease or other right of occupa....