Asian Hotels Ltd., v. JCIT,

ITA 1910/DEL/2002 | 1995-1996
Pronouncement Date: 16-09-2011 | Result: Allowed

Appeal Details

RSA Number 191020114 RSA 2002
Bench Delhi
Appeal Number ITA 1910/DEL/2002
Duration Of Justice 9 year(s) 4 month(s) 7 day(s)
Appellant Asian Hotels Ltd.,
Respondent JCIT,
Appeal Type Income Tax Appeal
Pronouncement Date 16-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 16-09-2011
Date Of Final Hearing 12-09-2011
Next Hearing Date 12-09-2011
Assessment Year 1995-1996
Appeal Filed On 09-05-2002
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : C : NEW DELHI BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER ITA NO.1910/DEL/2002 ASSESSMENT YEAR : 1995-96 ASIAN HOTELS LTD. BHIKAJI CAMA PLACE RING ROAD NEW DELHI 110 065. VS. JCIT SPECIAL RANGE-14 NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.P. RASTOGI ADVOCATE & SHRI P.N. SHASTRY CA REVENUE BY : SHRI SALIL MISHRA SR. DR ORDER PER I.P. BANSAL JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A) DATED 7 TH JANUARY 2002 FOR ASSESSMENT YEAR 1995-96. THE GROUNDS OF APPEAL READ AS UNDER:- 1. THAT THE WHOLE OF EXPENDITURE ON REPAIR AND RENOVA TION OF THE HOTEL INCLUDING THE EXPENSE CAPITALIZED BY THE APPEL LANT ARE REVENUE IN NATURE AND ARE ALLOWABLE. 2. THAT THE LEARNED CIT (A) HAS ERRED IN HOLDING SUM OF RS.28 51 036/- [16 98 311+ 11 52 725] INCURRED ON R EPAIRING OF THE AIR CONDITIONING SYSTEM INCLUDING DUCTING COOLING PIPES WEATHER MAKERS AIR HANDLING UNITS AND FANS AS CAPITAL IN NATURE AND CONSEQUENT UPHOLDING OF THE DISALLOWANCE. 3. THAT THE LEARNED CIT (A) HAS ERRED IN HOLDING SUM OF RS.57 06 403/- INCURRED ON REPAIRING OF THE CIVIL STR UCTURES IN CONNECTION WITH RENOVATION OF THE HOTEL AS CAPITAL IN NATU RE AND CONSEQUENT UPHOLDING OF THE DISALLOWANCE. ITA NO.1910/DEL/2002 2 4. THE INTEREST CHARGED U/S 234B IS WRONG. 5. THE ABOVE GROUNDS ARE INDEPENDENT AND WITHOUT PREJUDICE TO EACH OTHER. 6. THE APPELLANT SEEKS LEAVE TO ADD AMEND ALTER ABANDO N CLARIFY OR SUBSTITUTE ANY OF THE ABOVE GROUNDS AT THE TIME OF HEARING OF THE APPEAL. 2. THE IMPUGNED ASSESSMENT ORDER IS DATED 15 TH MAY 1998 PASSED IN PURSUANCE OF ORDER PASSED BY THE CIT (A) DATED 29 TH OCTOBER 1997 IN RESPECT OF ASSESSMENT COMPLETED U/S 143 (3) ON 13 TH MARCH 1997. THE ISSUE REGARDING ALLOWABILITY OR OTHERWISE OF EXPENDITU RE OF ` 2 42 99 144/- CLAIMED UNDER THE HEAD REPAIRS AND MA INTENANCE WAS RESTORED TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSIN G OFFICER HAS DISCUSSED THE NATURE OF THIS EXPENDITURE IN PARA 4 OF HIS ORDER AND HAS DISALLOWED A CUMULATIVE SUM OF ` 1 51 63 164/- IN THE INCOME RE- COMPUTED AS PER DIRECTIONS GIVEN BY LEARNED CIT (A). BY THE IMPUGNED ASSESSMENT ORDER ASSESSABLE INCOME OF THE ASSESSEE HAS BEEN COMPUTED AT ` 13 89 27 680/- AGAINST DECLARED TOTAL INCOME OF ` 9 39 54 960/-. IN THE IMPUGNED ORDER DATED 15 TH MAY 1998 THE ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF `1 51 63 16 4/- OUT OF EARLIER DISALLOWED AMOUNT OF ` 2 41 99 144/-. THE D ETAILS OF SUCH DISALLOWANCE HAS BEEN DESCRIBED BY THE ASSESSING OFFICER I N THE ASSESSMENT ORDER IN PARA 4 WHICH FOR THE SAKE OF CONVEN IENCE IS REPRODUCED BELOW:- I) M/S D.P. ENGINEERS : (TOTAL AMOUNT = RS.16 98 311/ -)* - SUPPLY AND INSTALLATION OF DUCTS - INSTALLATION OF FAN COIL UNITS - INSTALLATION OF PIPES AND VALVES - DISMANTALLING AND REFIXING ETC. - II) M/S SITA JUNEJA & ASSOCIATES : (TOTAL AMT = RS.21 2 3 341/- )# - FABRICATION CHARGES OF EXTRA ITEMS FOR ITALIAN RESTAURANT. ITA NO.1910/DEL/2002 3 III) M/S SANVIK ENGINEERS (I) PVT. LTD. : (TOTAL AMOUN T = RS.11 52 725/-)* - SUPPLY FABRICATION AND ERECTION OF SHEET METAL DUCTS. - DISMANTLING CARRYING OUT NECESSARY OVERHAULING OF EXISTING AIR HANDLING UNITS. - SUPPLYING AND LAYING MS PIPES - DISMANTLING INSPECTION SHIFTING OVERHAULING TEXTING AND COMMISSIONING OF EXISTING CHILLED POOL PLANTS. - VERTICAL AHU MODEL---- FOR PASSENGER LIFTS/SERVICE LI FTS. - AHU FANS SECTION FOR GUEST ELEVATORS. IV) M/S JN ASSOCIATES (TOTAL AMOUNT = RS.41 52 214/-)* - REMOVING OF EXISTING WRITING INCLUDING CONDUITS REWIRING AND SUPPLY OF COPPER WIRES AND CONDUITS. - SUPPLY AND INSTALLATION OF MS CONDUITS HALOGEN FIXTURE S LAMPS VOLUME CONTROLLER PILL BOXES ETC. V) M/S TIRATH RAM AHUJA PRIVATE LIMITED (TOTAL AMOUNT = RS.57 06 403/-)# DEMOLITION AND REMOVAL P/L RCC BOUNDARY WALL P/F POP CUFFER FALSE CEILING P/F THIN GLASS PANELING P/F GLASS DOOR SHUTTERS P/F THIN MIRROR OF 5.5. ML. (*) AMOUNT CAPITALIZED UNDER THE HEAD PLANT & MACHINER Y. (RS.70 03 250 + 2 85 170/- = RS.72 88 420/-) # AMOUNT CAPITALIZED UNDER THE HEAD BUILDING (RS.78 29 744/- + RS.45 000/- = RS.78 74 744/-) BESIDES TECHNICAL SERVICES FEE AMOUNTING TO RS.2 35 170/- PLUS OTHER REPAIRS AMOUNTING TO RS.45 000/- WERE ALSO INCU RRED IN CONNECTION WITH ABOVE MENTIONED WORK. HENCE THERE EXPE NSES WOULD ALSO NOT QUALIFY FOR ALLOWANCE UNDER REPAIRS AND MA INTENANCE. 3. AN APPEAL WAS FILED BEFORE THE CIT (A) WHO HAS DEL ETED THE DISALLOWANCE MADE IN RESPECT OF ITEM NOS.(II) (IV) AN D ALSO A SMALL DISALLOWANCES OF ` 2 35 170/- AND ` 45 000/- AND HAS SU STAINED THE ADDITION OF FOLLOWING ITEMS WHICH ARE AS UNDER:- (I) A SUM OF ` 16 98 311/- PERTAINING TO M/S D.P. ENG INEERS; AND ITA NO.1910/DEL/2002 4 (II) A SUM OF ` 11 52 725/- PAID TO M/S SANVIK ENGINE ERS (I) PVT. LTD. (III) A SUM OF ` 57 06 403/- PAID TO M/S TIRATH RAM A HUJA PVT. LTD. 3.1 THESE AMOUNTS ARE DESCRIBED UNDER ITEM (I) (III) AND (V). 4. THE ASSESSEE IS AGGRIEVED AND HENCE HAS FILED THE AFOREMENTIONED APPEAL. AT THE OUTSET IT WAS INFORME D BY THE LEARNED AR THAT THE DEPARTMENT HAS NOT PREFERRED ANY APPEAL AGAINST THE DISALLOWANCE DELETED BY LEARNED CIT (A). HE PLEADED THAT THE DETAILS IF PERUSED WILL REVEAL THAT NONE OF THE ITEMS DESCRIBED IN THE DETAILS PERTAINED TO ANY ENDURING BENEFIT OBTAINED BY THE A SSESSEE. IT WAS SUBMITTED THAT THE ASSESSEE IS A FIVE-STAR HOTEL AND IT HA S TO KEEP AND MAINTAIN ITS ASSETS IN A VERY GOOD CONDITION FOR WHICH THE NECESSARY EXPENSES WERE INCURRED AND THEY HAVE BEEN DEBITED UND ER REPAIR AND MAINTENANCE. HE SUBMITTED THAT THE TRIBUNAL FOR ASSE SSMENT YEAR 1998-99 AFTER CONSIDERING EARLIER DECISION OF THE TR IBUNAL AVAILABLE ON THIS ISSUE AND AFTER CONSIDERING VARIOUS JUDICIAL PRONOU NCEMENTS HAS COME TO THE CONCLUSION THAT INCURRENCE OF SUCH EXPEND ITURE IS IN THE NORMAL COURSE OF THE BUSINESS OF THE ASSESSEE AND THE TRIBU NAL HAD ALLOWED THE CLAIM OF THE ASSESSEE REGARDING SIMILAR DISAL LOWANCE OF ` 1 14 14 415/- AND ` 93 05 976/- WHICH WAS TREATED AS CAPITAL EXPENDITURE BY THE ASSESSING OFFICER. HE IN THIS REGARD REFERRED TO THE COPY OF THE TRIBUNAL DECISION DATED 16 TH JANUARY 2009 IN ITA NO.1125/DEL/2003 COPY OF WHICH HAS BEEN PLACED ON O UR RECORD. 5. THE LEARNED AR FURTHER DREW OUR ATTENTION TO THE DETAILS FILED IN THE PAPER BOOK. BRIEF DESCRIPTION OF RELEVANT DETAI LS ARE SUBMITTED AT PAGE 1 AND THE DETAILS OF VOUCHERS ARE ALSO MENTIONED AGAINST EACH ITEM:- ITA NO.1910/DEL/2002 5 DETAILS OF REPAIRS AND MAINTENANCE PARTICULARS PARTICULARS PARTICULARS PARTICULARS AMOUNT (RS.) AMOUNT (RS.) AMOUNT (RS.) AMOUNT (RS.) PAGE NO. PAGE NO. PAGE NO. PAGE NO. BILLS FOR REPAIRS TO CENTRAL HVAC (HEATING & VENTILATION AIR CONDITIONING) DP ENGINEERS 16 98 311 1-28 SANVIK ENGINEERS (I) PVT. LTD. 11 52 725 29-62 CIVIL WORK REPAIRS & MAINTENANCE BILLS OF TIRATH RAM AHUJA PVT. LTD. LANDSCAPING WORK OF LAWNS IN THE HOTEL PREMISES 42 561 63-77 REPAIRS IN ALL KITCHENS OF THE HOTEL 9 67 525 78-89 REPAIRS IN SHOPPING ARCADE AREA 14 19 448 90-99 REPAIRS IN BANQUET/ PREFUNCTION AREA 17 67 610 100-109 REPAIRS IN MEETING ROOM 9 21 283 110-123 REPAIRS IN COFFEE SHOP 3 44 951 124-131 REPAIRS IN PROJECT OFFICE 2 03 465 132-140 REPAIRS IN HEALTH CLUB 160 141-155 REPAIRS IN BEAUTY PARLOUR 39 400 57 06 403 156-166 TOTAL TOTAL TOTAL TOTAL 85 57 439 85 57 439 85 57 439 85 57 439 ====== ====== ====== ====== 6. REFERRING TO THE RELEVANT PAGES IT WAS SUBMITTED B Y HIM THAT THE NATURE OF THE EXPENSES INCURRED AND SHOWN IN THE RELEV ANT VOUCHERS WILL REVEAL THAT THE EXPENSES INCURRED BY THE ASSESSEE WE RE NOT IN THE NATURE OF CAPITAL BUT WERE IN THE NATURE OF REVENU E. HE FURTHER SUBMITTED THAT IT HAS BEEN MADE CLEAR IN THE IMPUGNED ORDER PASSED BY THE CIT (A) THAT THE ASSESSEE IS CAPITALIZING THE EXP ENDITURE WHICH RELATES TO CAPITAL AND CLAIMING THE EXPENDITURE WHIC H FALLS UNDER THE CATEGORY OF REVENUE EXPENDITURE. HE SUBMITTED THAT DETAILED EXISTENCE OF SUCH FACT CAN BE FOUND IN THE ORDER OF T HE CIT (A) IN PARA 5 WHERE SUCH DETAILS HAVE BEEN DESCRIBED AS UNDER:- ITA NO.1910/DEL/2002 6 A. YEAR 94-95 95-96 AMOUNT CAPITALIZED 98200830/- 104423530/- AMT. DEBITED TO REPAIR & MAINTENANCE 34892811/- 24199144/- 7. THUS LEARNED AR PLEADED THAT DISALLOWANCE HAS WRON GLY BEEN SUSTAINED BY THE CIT (A) TO THE EXTENT OF ` 85 57 439 /- AND THE SAME SHOULD BE DELETED. 8. ON THE OTHER HAND THE LEARNED DR HAS PLACED HEAV Y RELIANCE ON THE DECISION OF ITAT IN THE CASE OF THE ASSESSEE IN RESPEC T OF ASSESSMENT YEARS 1991-92 TO 1994-95 WHICH IS REPORTED AS 1 01 ITD 247 WHEREIN THE DISALLOWANCE WAS UPHELD BY THE TRIBUN AL. HE PLEADED THAT THE ASSESSEE HAS INCURRED THESE EXPENDITURES AS PLANNE D EXPENDITURE WHICH WAS DRAWN AS COMPREHENSIVE RENOVATIO N PROJECT OF THE ENTIRE PROPERTY WHICH WAS TAKEN UP TO MEET THESE CHANGED EXPECTATIONS OF DESIRED CLIENTELE INVOLVES A COMPLETE UPGRADATION/CHANGE IN THE INTERIOR DECORATION OF TH E ROOMS LOBBY FOOD AND BEVERAGE OUTLETS AND ALL OTHER PUBLIC AREAS. AFT ER SUCH RENOVATION THE HOTEL WAS TO EMERGE AS THE NO.1 HOTEL IN THE COUN TRY PROVIDING SERVICES AND FACILITIES OF THE HIGHEST INTERNATIONAL STA NDARDS AND THE PROJECT EXPENDITURE FOR THE SAME WAS FIXED AT ` 3500 LAKHS AND OUT OF WHICH THE EXPENDITURE INCURRED UPTO 31 ST MARCH 1992 WAS 1158 LAKHS. ON THESE FACTS IN RESPECT OF ASSESSMENT YEARS 1991-92 TO 19 94-95 IT WAS HELD BY THE TRIBUNAL THAT INCURRENCE OF SUCH EXPE NDITURE WERE NOT ALLOWABLE AS BUSINESS EXPENDITURE. LEARNED DR PLEADED THAT THE ORDER OF THE CIT (A) IS A CUMULATIVE ORDER FOR ASSESSMEN T YEAR 1994-95 AND 1995-96. HE THEREFORE PLEADED THAT THE ISSUE I S COVERED AGAINST THE ASSESSEE BY THE AFOREMENTIONED ORDER OF THE TRIBUNA L AND THEREFORE THE SAID ORDER OF THE TRIBUNAL SHOULD BE F OLLOWED AND THE DISALLOWANCE SUSTAINED BY THE CIT (A) SHOULD BE UPHELD. ITA NO.1910/DEL/2002 7 9. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. WE FIND NO FORCE IN THE CONTENTION OF THE LEARNED DR THAT ON THE BASIS OF THE AFOREMENTIONE D ORDER OF THE TRIBUNAL IN RESPECT OF ASSESSMENT YEAR 1991-92 TO 1994-9 5 THE DISALLOWANCE UPHELD BY THE CIT (A) SHOULD BE SUSTAINED. THE REASON FOR NOT DOING SO IS THAT THE FACT REGARDING 1995-96 WERE UNDER THE CONSIDERATION OF THE TRIBUNAL IN THE AFOREMENTIONED ORDER IN PARA 25 WHEREIN IT HAS BEEN DESCRIBED THAT FOR ASSESSMENT YEAR 19 95-96 THE ASSESSEE HAS DIVIDED THE EXPENDITURE IN TWO CATEGORIES F IRST AT ` 2 41 99 144/- AS REPAIR AND MAINTENANCE AND SECOND AT ` 11 78 79 881/- AS CAPITAL EXPENDITURE. IT WAS NOTED BY THE TRIBUNAL THAT CONSIDERABLE EXPENDITURE WAS INCURRED ON RENOVAT ION AND REFURBISHMENT PROJECT DURING ASSESSMENT YEAR 1995-96 AND THESE OBSERVATIONS OF THE TRIBUNAL ARE REPRODUCED FOR THE SA KE OF CONVENIENCE:- 25. FOR ASSESSMENT YEAR 1994-95 THE LEARNED COUNSEL REFERRED TO PAGES 20 TO 33 OF THE PAPER BOOK WHEREIN B ROAD DESCRIPTION OF THE EXPENDITURE DIVIDED BETWEEN REPAIRS AND MAINTENANCE ON THE ONE HAND AND CAPITALIZED ON THE OTHER HAND HAS BEEN GIVEN FOR ASSESSMENT YEAR 1994-95 AS WELL A S ASSESSMENT YEAR 1995-96. IT IS SEEN FROM THESE PAPERS THAT FOR ASSESSMENT YEAR 1994-95 THE ASSESSEE ALLOCATED RENOVATI ON AND REFURBISHMENT EXPENDITURE AS REPAIRS TO THE EXTENT OF RS.3 48 92 811/- AND AS CAPITAL EXPENDITURE TO THE EXTEN T OF RS.10 49 59 691/- AND FOR ASSESSMENT YEAR 1995-96 THE ASSESSEE DIVIDED THE EXPENDITURE AT RS.2 41 99 144/- A S REPAIRS AND MAINTENANCE AND RS.11 78 79 881/- AS CAPITAL EX PENDITURE. IT IS SEEN THAT CONSIDERABLE EXPENDITURE HAS BEEN INCUR RED ON RENOVATION AND REFURBISHMENT PROJECT DURING ASSESSMENT YEAR 1995-96 (NOT BEFORE US) ALSO. THE LEARNED COUNSEL A LSO REFERRED TO PAGES 36 TO 40 OF THE SECOND PAPER BOOK WHEREIN THE SAME INFORMATION IN RELATION TO ASSESSMENT YEAR 1994-95 HAS BEEN PRESENTED IN SHORTER FORM. 10. FURTHER REFERENCE CAN BE MADE TO THE OBSERVATIO NS OF THE TRIBUNAL IN PARA 37 WHEREIN THE TRIBUNAL HAS TAKEN N OTE OF THE FACT THAT: ITA NO.1910/DEL/2002 8 AS FAR AS ROUTINE EXPENDITURES ON REPAIR IS CONCERNE D THE SAME HAVE BEEN ALLOWED BY THE ASSESSING OFFICER. SUCH EX PENDITURE FOR ASSESSMENT YEAR 1993-94 AMOUNTED TO ` 4 34 21 011/ - FOR ASSESSMENT YEAR 1994-95 SUCH EXPENDITURE ARE AMOUNTIN G TO ` 412.63 LAC. 11. IT IS THUS SEEN THAT IN EACH OF THE EARLIER YEAR S THE ASSESSEE HAS ALSO CLAIMED CERTAIN PART OF THE TOTAL EXPENDITURE A S DEDUCTION ON THE GROUND OF NORMAL REPAIRS AND THE ASSESSING OFFICER HAS NO T QUESTIONED SUCH CLAIM OF THE ASSESSEE. 12. IN THE LIGHT OF THESE FACTS IF THE AFOREMENTIONE D OBSERVATIONS OF THE TRIBUNAL ARE KEPT IN MIND THEN THE ASSESSEES CLAI M REGARDING PART OF THE EXPENDITURE AS DEDUCTION ON THE GROUND O F NORMAL REPAIRS WAS ALLOWED BY THE ASSESSING OFFICER DURING ASSESSMENT YEAR 1993-94 AND 1994-95. 13. IF THE FACTS OF THE PRESENT CASE ARE SEEN IN THE LI GHT OF THE AFOREMENTIONED OBSERVATIONS THEN THE POSITION FOR TH E YEAR UNDER CONSIDERATION WILL BE THAT THE ASSESSEE HAS CLAIMED ONLY EXPENDITURE OF ` 2 41 99 144/- AS REPAIRS AND HAS DEBITED ANOTHER SUM OF ` 11 78 79 881/- AS CAPITAL EXPENDITURE AND THE EXPEND ITURE OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION SHOWN ON REPAIR AND CLAIMED AS REVENUE EXPENDITURE ARE MUCH LESS THAN THE EXPENDIT URE CLAIMED IN THE EARLIER YEARS. FOR EXAMPLE THE EXPENDITURE CLA IMED AS REPAIR & MAINTENANCE FOR THE YEAR UNDER CONSIDERATION ARE ` 2 .41 CRORE AGAINST ` 4.34 CRORE FOR ASSESSMENT YEAR 1993-94 AND ` 4.12 CRO RE FOR ASSESSMENT YEAR 1994-95. THEREFORE THE ARGUMENT OF TH E LEARNED DR THAT ON THE BASIS OF THE AFOREMENTIONED ORDER OF THE TRIBUNAL SUCH DISALLOWANCE NEEDS TO BE CONFIRMED CANNOT BE ACCEPTED . 14. IT IS TRITE LAW THAT NATURE OF EXPENDITURE WILL DETERMINE THE QUESTION THAT WHETHER THE SAME IS IN THE NATURE OF REV ENUE OR THE ITA NO.1910/DEL/2002 9 SAME IS IN THE NATURE OF CAPITAL. IT HAS BEEN THE CASE OF THE ASSESSEE THAT BY MAKING REPAIR OF THE EXISTING AIR-CONDITIONI NG DUCTS ETC. WILL GIVE NO ENDURING ADVANTAGE TO THE ASSESSEE AND SIMILAR I S THE POSITION WITH THE CIVIL WORK DONE IN THE SHAPE OF REPAIR AND MAINTENANCE AND THE AMOUNT GIVEN TO TIRATH RAM AHUJA PVT. LTD. WH ICH IS REGARDING REPAIR OF KITCHENS SHOPPING ARCADE OR BANQUET/PRE-FU NCTION AREA MEETING ROOM COFFEE SHOP PROJECT OFFICE ETC. CANN OT BE CONSIDERED TO BE CAPITAL EXPENDITURE AS THEY ARE IN THE NATURE OF REPAIRS ONLY. THE DETAIL WILL REVEAL THAT BY INCURRING ONLY AN AMOUNT OF ` 57 06 403/- ON THE REPAIR OF ALL THESE ITEMS CANNOT CREATE NEW ASSET T O SAY THAT ANY ENDURING BENEFIT HAS BEEN OBTAINED BY THE ASSESSEE. CON TINUOUS REPAIR AND MAINTENANCE OF THIS TYPE IS NECESSARY IN THE BUSINESS OF THE ASSESSEE AS THE ASSESSEE IS RUNNING DELUXE FIVE-STAR HOTEL. T HE NATURE OF EXPENDITURE INCURRED ALSO DOES NOT SHOW THAT ANY ASSE T HAS BEEN CREATED FOR WHICH IT COULD BE SAID THAT THE ASSESSEE HAS OBTAINED ENDURING BENEFIT. RATHER THE CASE OF THE ASSESSEE WIL L FALL WITHIN THE PROPOSITION DECIDED IN RESPECT OF ASSESSMENT YEAR 1998-99 WHERE SIMILAR EXPENDITURES INCURRED BY THE ASSESSEE TO THE TUNE OF ` 1.14 CRORE AND 93 LAC WERE HELD TO BE CAPITAL EXPENDITUR E BY THE REVENUE AND THESE EXPENDITURES WERE ALLOWED BY THE TRIBUNAL A S REVENUE EXPENDITURE AND THE EARLIER DECISION OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE AS REPORTED IN 101 ITD 247 WAS DISTINGUISHED. 15. FOR THE REASONS GIVEN ABOVE WE FIND NO JUSTIFICAT ION IN UPHOLDING THE AFOREMENTIONED DISALLOWANCES AGGREGATING TO ` 85 57 439/- AND THE SAME ARE DELETED. THE GROUND NOS.2 AND 3 OF THE ASSESSEE ARE ALLOWED. 16. SO AS IT RELATES TO OTHER GROUNDS THEY WERE NOT SE PARATELY ADDRESSED BY LD. COUNSEL OF THE ASSESSEE. GROUND NOS.1 5 A ND 6 ARE GENERAL IN NATURE AND GROUND NO.4 IS REGARDING CHARG ING OF INTEREST U/S ITA NO.1910/DEL/2002 10 234B. SO FAR AS IT RELATES TO LEVY OF INTEREST U/S 234 B THE SAME IS CONSEQUENTIAL AND THE ASSESSING OFFICER IS DIRECTED TO RE COMPUTE THE LEVY OF INTEREST U/S 234B AFTER GIVING EFFECT TO THIS ORDER. 17. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS AL LOWED IN THE MANNER AFORESAID. THE ORDER PRONOUNCED IN THE OPEN COURT ON 16.09.20 11. SD/- SD/- [SHAMIM YAHYA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 16.09.2011. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES