NIRMAL COMMERCIAL LTD,MUMBAI vs. ITO WD 3(3)(3), MUMBAI
In the result, the appeal filed by the assessee is hereby allowed
ITA 1233/MUM/2017[2013-14]Status: DisposedITAT Mumbai09 Feb 2021AY 2013-14
Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.1233/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2013-14) Shree Nirmal Commercial बिधम/ Income Tax Officer Ward Ltd. 3(3)(3) Vs. 241/242, Nirmal Bldg, Aaykar Bhavan, Mumbai- Backbay Reclamation, 400020. Nariman Point, Mumba- 400021. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs7533F (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri K. Gopal Ms. Neha Paranjpe Revenue By: Shri Rajendra Joshi (Dr) सुनवाई की तारीख / Date Of Hearing: 02/12/2020 घोषणा की तारीख /Date Of Pronouncement: 09/02/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 28.11.2016 Passed By The Commissioner Of Income Tax (Appeals) -8, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2013- 14. 2. The Assessee Has Raised The Following Grounds: - “1.1 On The Facts & Circumstances Of The Case & In Law The Assessing Officer Has Erred In Considering The Following Expenses As Capital Expenditure Instead Of Revenue Expenditure Out Of The Total Expenses Of Repairs & Maintenance Of Rs. 70,04,835 Debited To Profit & Loss Account & Cit(A) In Confirming The Same. A.Y.2013-14 Name Of Party Rupees M/S. Bagwe Engineering Ltd. 12,17,472 M/S. Kamal Marble 23,62,501 M/S. Vinod Engineering 17,77,716 Total 53,57,689 2.2 The Cit(A) & The Assessing Officer Is Of The View That The Above Expenditures Have Not Been Incurred In Relation To Annual Maintenance Cost For Normal Wear & Tear & The Said Expenditures Are Expected To Give Long Lasting Benefit To The Appellant & Hence, Erred In Considering The Same As Capital Expenditure.
For Appellant: Shri K. GopalFor Respondent: Shri Rajendra Joshi (DR)
…directors and shareholders may have been", and also the further observations "It is irrelevant that a transaction was forced on the company by its principal shareholders." Shri Dastur also relied upon the observations made in F. E. Dinshaw Ltd. v. CIT [1959] 36 ITR 114, 121 (Bom), wherein it has been held that in the absence of fraud, the questions whether the transaction has the effect of diminishing an assessee's taxable income and whether it was necessary for the assessee to enter into the transaction are irrelevant. Shri Dastur also relied upon the decision in CIT v. Nainital. Bank Ltd. Ltd. , wherein it is…
