TaxTMI 
TaxTMI 
2017 (1) TMI 621
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....pital expenditure a sum of Rs. 11,18,840/- being the routine repair expense incurred on leased premises used for business purposes and which did not bring into existence any asset of any enduring nature. 2. That the appellant reserves to itself, the right to add, alter, amend, substitute, withdraw and / or any ground(s) of appeal on or before the date of hearing. 2. The grounds raised by the Revenue in its Appeal read as under:- "1. On the facts and in the circumstances of the case, the erred in deleting disallowance of Rs. 4,31,517/- made by the AO on account of expenses claimed in the profit and loss account under the head repair and maintenance by ignoring the fact the expenses were not incurred wholly and exclusively for the business....
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.... Subsequently, notice u/s. 142(1) of the Act alongwith questionnaire was issued and information in support of its claim was called for. In response thereto, the assessee's AR attended the proceedings from time to time and filed the details/information. During the period, the assessee company is stated to be engaged in the business of retail distribution of petrol, LPG and related products, fast food business and letting of properties. AO observed that in the absence of evidences or proper vouching by the assessee, he made the various additions and assessed the income of the assessee at Rs. 33,23,951/- u/s. 143(3) of the I.T. Act, 1961 vide his order dated 14.11.2014. 4. Aggrieved with the aforesaid order of the AO, the assessee filed appea....
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....tine business expenses. The AO however, was of the view that in the absence of proper vouching, the claim of expenses is not entirely correct. He therefore, disallowed 50% of the claim of cash expenses i.e. Rs. 93,397/- & Rs. 3,38,120/-under the respective heads. It is evident that the disallowance made is completely ad-hoc without specific finding as to how the expenditure incurred is not for business purpose. It is not the case of the AO that the expenditure claimed is not genuine. Since all bills/vouchers and ledger accounts were before the AO, it would have been appropriate that specific vouchers etc. were identified before the disallowance was made. The assessee had incurred the expenditure on a lease property used as holiday home for ....
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....nce on our part, hence, I uphold the same and accordingly, the ground no. 2 raised by the Revenue is dismissed. 8.3 With regard to ground no. 3 relating to deletion of addition of Rs. 24,66,305/- on account of repair and maintenance raised in Revenue is concerned, the AO has disallowed expenses of Rs. 35,85,145/- incurred on repair and maintenance for maintenance of leased property at 42, Janpath used by the assessee as its office by treating it as capital expenditure. I find that Ld. CIT(A) has observed that the expenditure has been incurred on painting, polishing, repair of false ceiling, water proofing treatment, tile work, dismantling of roof and other miscellaneous repairs. On careful examination of the bills/vouchers, it was noted th....