Case Law Details
Allen Career Institute Vs JCIT (ITAT Jaipur)
Disallowance of Rs.2,01,515/- on account of New Electricity Connection charges. In Ground of Appeal disallowance of Rs. 2,01,515/- made relating to the claim on account of electric connection charges, is agitated. The AO noted that the assessee had claimed expenditure of Rs.2,37,076/- for new electricity connection charges. When asked, the assessee stated that the charges so paid were for connection charges, electricity lines, supervision charges, CTPT set cost and meter cost but did not create any property. The AO however, feeling dissatisfied, disallowed Rs.2,01,515 after allowing depreciation @ 15% vide para 2.5.3 pg 22 mainly on the ground that it is clearly a capital expenditure, which resulted into benefit of enduring nature. He placed reliance on Assam Bengal Cement Co. Ltd. v/s CIT (1955) 27 ITR 0034 (SC). However, the CIT(A) also confirmed the same.
Before us the ld. AR made the following submissions with prayers to delete the disallowance confirmed by the ld. CIT(A)
1. Firstly, we strongly rely upon the detailed written submissions filed before the ld. CIT(A), which are reproduced at pg 32-33 & 37 of the order of CIT(A).
2. The AO has not established that such expenditure resulted into creation of a new property or the assessee got an advantage of an enduring nature and hence, such a disallowance was wrongly made. The impugned disallowance may kindly be deleted in full.
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