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| The Tax Publishers2021 TaxPub(DT) 0856 (Bang-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where AO had without examining the nature of expenses incurred by the assessee under the head 'repairs and maintenance' and also without examining critically the details of said repairs and maintenance expenses incurred, held it to be capital in nature, matter was remanded for fresh examination at the end of the AO.
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Capital or revenue expenditure - Repairs and maintenance expenses - Non-examination of nature and details of expenditure incurred -
Assessee filed appeal against the order of AO in which it was held that it had got enduring benefit by incurring the repairs and maintenance expenses and hence they were capital in nature.Held: AO had not examined critically the details of repairs and maintenance expenses incurred by the assessee. He had not examined the nature of expenses incurred by the assessee under the head 'repairs and maintenance'. Thus, without examining the details of Repairs and Maintenance expenses, particularly with regard to the nature of expenses, one cannot decide the nature of expenses, i.e., whether they are capital or revenue in nature. Accordingly, the issue required fresh examination at the end of the AO.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2009-10 to 2012-13
IN THE ITAT, BANGALORE BENCH
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