BIGJOS INDIA LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Appellant has filed the present appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as Act) against the order dated 20th January, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench A (hereinafter referred to as Tribunal) in ITA No.4223/Del/2001 for the assessment year 1998-99, whereby the Tribunal upheld the disallowance of Rs. 7 lacs made on account of repair and maintenance expenses by the Commissioner of Income Tax (Appeals).

(2.) The facts in brief are that the Assessee is running its business at its retail departmental store situated at New Delhi South Extension Part-II. The Assessee claimed deduction of Rs.15.15 lacs on account of repair and maintenance expenditure. In addition, the Assessee claimed deduction amounting to Rs.2.65 lacs for air-conditioner repair and maintenance. The Assessing Officer noted from the details filed by the Assessee that most of the expenses related to supply of building material including timber and plywood of Rs.2,20,000/-. The Assessee stated before the Assessing Officer that during the year, various new counters were constructed and other building work had been undertaken. The Assessing Officer held that this expenditure incurred by the Assessee has resulted in enduring benefit for a long period and he assessed a sum of Rs.10 lacs on estimate as representing capital expenditure incurred by the Assessee.

(3.) Being dissatisfied, the Assessee filed an appeal before Commissioner of Income Tax (Appeals) who agreed with the findings of the Assessing Officer that the expenditure incurred has resulted in the long term enduring benefit to the Assessee. However, the Commissioner of Income Tax (Appeals) held that the estimate of Rs.10 lacs made by the Assessing Officer was on higher side and he sustained the disallowance to the extent of Rs.7 lacs.