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Income Tax Appellate Tribunal, “J” BENCH, MUMBAI
Before: HON’BLE SHRI MAHAVIR SINGH, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
Assessment Year :2004-05 आयकर अपीलीय अिधकरण “जे” "ायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI माननीय "ी महावीर िसंह, "ाियक सद" एवं माननीय "ी मनोज कुमार अ"वाल ,लेखा सद" के सम"। BEFORE HON’BLE SHRI MAHAVIR SINGH, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा"रण वष" / Assessment Year:2004-05) Mahindra & Mahindra Limited ACIT-Circle-2(2) बनाम/ Mahindra towers Aaykar Bhavan, M.K. Marg Vs. Worli, Mumbai-400 018. Mumbai-400 020. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AAACM-3025-E (अपीलाथ"/Appellant) (""थ" / Respondent) : Appellant by : Shri Ketan Ved- Ld. AR Respondent by : Shri Rajneesh Yadav - Ld.DR सुनवाई की तारीख/ : 16/09/2019 Date of Hearing घोषणा की तारीख / : 03/10/2019 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal was disposed-off by the Tribunal on 21/03/2018. However, upon assessee’s miscellaneous application MA No.593/Mum/2018 order dated 20/03/2019, the grounds relating to write- off of capital advances and repairs to building were recalled and accordingly, placed before this bench for re-adjudication. We have heard and considered the submissions made by respective representatives. Assessment Year :2004-05 2. Ground No.3(a) is related with write-off of capital advances for Rs.64.85 Lacs. The assessee had written off certain advances during the year and claimed the same as revenue expenditure. However, Ld. AO, treating the same to be capital in nature, disallowed the same. The learned CIT(A) confirmed the disallowance by relying upon the decision of this Tribunal in AY 2006-07. The Ld. AR submitted that the reliance was erroneous since no such issue was adjudicated by the Tribunal in AY 2006-07. In fact, it has been submitted that the issue stood squarely covered in assessee’s favor by the decision of this Tribunal for AYs 1999-2000 as well as for AYs 2002-03 & 2003-04, the copies of which have been placed on record. We note that similar observations were made by the bench while recalling the issue. Therefore, keeping in view the submissions, the matter stand restored back to the file of Ld. CIT(A) for re-adjudication after considering the factual matrix in the light of decision of the Tribunal in assessee’s own case for earlier AYs. This ground stand allowed for statistical purposes.
Ground No.3(c) is related with disallowance of Rs.97.28 Lacs representing repairs to building. Treating the same to be capital expenditure, Ld. AO disallowed the same. It was noted that the said sum included a sum of Rs.49.08 Lacs shown to have paid as consultancy fees to a hospital in the name of Old-world Hospital. The Ld. AR explained that the said sum was actually paid to an entity by the name Old World Hospitality and not to a hospital as wrongly noted by lower authorities. Our attention has also been drawn to the fact that repair expenditure was incurred towards upkeep of the old building and was allowable as revenue expenditure. In support, our attention has been Assessment Year :2004-05 drawn to item-wise details placed before us. After due consideration, the matter stand restored back to the file of learned CIT(A) to appreciate the factual matrix in the correct perspective and re-adjudicate the same in the light of submissions made before us. This ground also stand allowed for statistical purposes.
Needless to add that adequate opportunity of being heard shall be granted to the assessee.
Resultantly, both the grounds stand allowed for statistical purposes. The appeal remains partly allowed. Order pronounced in the open court on 03rd October, 2019. (Mahavir Singh) (Manoj Kumar Aggarwal) "ाियक सद" / Judicial Member लेखा सद" / Accountant Member मुंबई Mumbai; िदनांक Dated : 03/10/2019 Sr.PS, Jaisy Varghese आदेशकी"ितिलिपअ"ेिषत/Copy of the Order forwarded to : अपीलाथ"/ The Appellant 1. ""थ"/ The Respondent 2. आयकरआयु"(अपील) / The CIT(A) 3. आयकरआयु"/ CIT– concerned 4. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai 5. गाड"फाईल / Guard File 6. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.