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)
…epartment in view of the material already on record. To substantiate this contention, Shri Dastur has relied upon a number of decisions. He has first pointed out that this court in the assessee's own case reported in Shree Nirmal Commercial Ltd. v. CIT [1992] 193 ITR 694, at page 700, has observed that the arrangement arrived at by the assessee in the present case was devised for raising finance as the assessee-company was faced with the stupendous task of raising funds of about Rs. 80 lakhs which was the estimated cost of construction of a commercial building and that the arrangement between the assessee-company…
