CIT v. Volga Restaurant

Sunbeam Monochem P. Ltd., Mumbai vs. Pr. CIT (A)-8, Mumbai

In the result, the appeal of the assessee is partly allowed

Bench: Shri Aby T. Varkey, Jm & Shri Om Prakash Kant, Am आयकर अपील सं/ I.T.A. No.624/Mum/2021 (निर्धारण वर्ा / Assessment Years: 2015-16) Sunbeam Monochem Pvt. बिधम/ Pcit-8 Ltd. Room No. 611, 6Th Floor, Vs. 201/B, Runwal & Omkar Aayakar Bhavan, Esquare, Opp Sion Maharshi Karve Road, Chunabhatti Signal, Eastern Mumbai-400020. Express Highway, Sion East, Mumbai-400022. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcs8172P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Devendra Jain Revenue By: Shri Byomakesh Pradipta Kumar Panda (Dr) सुनवाई की तारीख / Date Of Hearing: 28/12/2022 घोषणा की तारीख /Date Of Pronouncement: 10/03/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Appeal Preferred By The Assessee Is Against The Order Of The Ld. Principal Commissioner Of Income Tax-8 [Hereinafter Referred To As The “Pcit”], Mumbai Dated 26.02.2021 For Assessment Year 2015- 16 Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”).

…e thus contended that these expenses were rightly allowed by the AO, as deduction from the profits of the business. We find this claim of the assessee to be ably supported by the decision of the Hon’ble Delhi High Court in the case of CIT Vs Volga Restaurant (253 ITR 405). In the instant case also, the expenses incurred by the assessee for restoring the fixed assets to its original condition, which had been damaged by fire, was held to be allowable as revenue expenditure while computing profits of the business. The relevant portion of the judgment reads as under: “5. The expression 'current repairs' means expend…