TaxTMI 
TaxTMI 
2021 (7) TMI 1070
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....ithout prejudice to the above Ground, the Learned CIT(Appeals) has erred in upholding the addition u/s 68 of I T Act, of Rs. 12,01,648/- which (figure) was arrived at by the learned AO merely on the basis of erroneous arithmetical figure work. 1(iii)The Learned CIT(Appeals) has erred in upholding the addition u/s 68 of I T Act, of Rs. 12,01,648/- without touching the basic issues involved viz, the particular concerns in whose names the cash credits stood, amount of cash credit involved in each case and capacity of each concern to advance money etc which are conspicuously absent in the assessment order appealed against. 1(iv). The Learned CIT(Appeals) has erred in upholding the cash credits appearing in case of seven loan creditors out o....
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....out appreciating the fact that this related to only and only running Nursery and Primary schools at Kolkata, receipts wherefrom are shown separately and offered for taxation as business income. 2(iv). The Learned CIT(Appeals) has erred in upholding disallowance of Repairs & Maintenance expenditure of Rs. 18,34,6221- by holding it as relatable to rental receipts for which a deduction u/s 24 of the Act is allowed separately in computing income from house property. 3. The Appellant craves leave to alter, amend and/or delete any ground of appeal or add a new ground of appeal during hearing of the Appeal . 2. The Brief facts of the case are that the assessee company is engaged in the business of running nursery and primary schools at Kolkat....
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....and made an addition of Rs. 12,01,648/-(ii).Similarly the A.O made addition u/s 40(A)(2)(b) in respect of non reconciliation in difference in expenses treated as unexplained expenditure u/s 69C of the Act Rs. 18,50,908/-.(iii) The A.O found as per the Tax Audit report the assessee has paid interest to its directors with out TDS and claimed interest on unsecured loans in the profit and loss account and the A.O. applying the provisions of Sec. 40(a)(ia) of the Act disallowed Rs. 10,58,541/.- (iv) The A.O. on verification of profit and loss account find that the assessee has debited the repairs and maintenance and the A.O. has called for the segment wise profit and loss pertaining to revenue generated from sale of electricity, receipts from sc....
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.... Similarly in respect of claim of repairs and maintenance expense, the A.O. observed that the assessee has claimed deduction under provisions of Sec.24 of the Act. The Ld.AR emphasized that the assessee derives rental income from school but has incurred specific maintenance expenses and it does not qualify for the claim u/s 24 of the Act. The Ld. AR referred to the account statement and nature of repairs and maintenance and explained that these are the factual needs to be mandatorily incurred for maintainence of building. Further in the subsequent Assessement years, the revenue has accepted the claim and allowed the deduction and prayed for allowing the assessee appeal. Contra, the Ld.DR relied on the order of the CIT(A). 5. We heard the r....
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....have been accepted and the same is reflected as the closing balances in the ledger account of the group summary provided. The A.O could have made enquiry in respect of any particular unsecured loan creditor and some of the loan creditors have been repaid which was accepted. Considering the overall facts and evidences, we find the submissions of the Ld.AR are realistic and duly supported by the material and the confirmations on record. 6. We are of the substantive opinion that the A.O cannot make the addition of unsecured loans u/s68 of the Act considering only the opening and closing balance of the unsecured loans in group summary. The unsecured loans may increase or decrease and accrued interest is credited and the actual interest payment....
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....ed the school receipts separately and therefore the claim cannot be denied. The assessee is having different properties and the school property is one of them. The Ld.AR referred to the nature of repairs and maintenance charges-school at page 19 of the paper book being part of the annual report of F.Y.2013-14 which are variable expenses pertaining to repair charges, fire fighting AMC, carpentry Charges, sewages and painting works and civil works and renovation expenses etc and similar expenses were claimed in earlier years. 8. We on perusal of these facts find that the assessee is clearly maintaining the claims of expenditure in the books of accounts which are Audited under the Companies Act and Tax Audit U/sec44AB of the Act. The A.O has ....