DCIT. CIRCLE-4(1)(2), AHMEDABAD vs. M/S. TORQUE AUTOMOTIVE PVT. LTD., AHMEDABAD

ITA 1990/AHD/2018Status: DisposedITAT Ahmedabad23 November 2022AY 2015-167 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the expenses were incurred for better utilization of existing space and to meet the principal's requirements, without creating a new asset. Therefore, the expenses were allowable as revenue expenditure.

What were the facts?

The assessee company renovated its four showrooms as per Skoda's Corporate Identity Look Policy, incurring significant expenses. The Assessing Officer treated a portion of these expenses as capital expenditure, while the CIT(A) allowed them as revenue expenditure.

What were the issues?

Whether expenses incurred for renovation of showrooms to comply with corporate identity policy are capital or revenue expenditure.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SMT. ANNAPURNA GUPTA & SHRI T.R. SENTHIL KUMAR

Hearing: 19.09.2022Pronounced: 23.11.2022

PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER:

This appeal is filed by the Revenue against the order dated 09.07.2018 passed by the Commissioner of Income Tax (Appeals)- 8, Ahmedabad relating to the Assessment Year 2015-16. 2. Solitary ground raised by the Revenue is that the Ld. CIT(A) erred in law and on facts in treating capital expenditure of Rs. 10,48,11,003/- as revenue expenditure.

3.

The brief facts of the case is that the assessee is engage

The order continues below.

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