M/S INFRA DREDGE SERVICE PVT LTD., MUMBAI vs DCIT, CIRLCE (2)(2)(1), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES “C”, MUMBAI

Before Shri Shamim Yahya, Accountant Member
& Shri Ravish Sood, Judicial Member

ITA No.1746/MUM/2019
Assessment Year: 2010-11

M/s Infra Dredge Services Pvt. Ltd.
Flat No.1101, Mount Everest Bldg.,B-Wing, Bhakti Park, Wadala (East), Mumbai 400 037.PAN AABCI9189A
(Appellant) 

Vs.

The DCIT Circle (2)(2)(1), Mumbai
(Respondent)

Appellant By : None
Respondent By : Shri Uodal Raj Singh
Date of Hearing : 08.10.2020 Date of Pronouncement : 14.10.2020

O R D E R

Per Shamim Yahya, Accountant Member

This is an appeal by the assessee directed against order of learned CIT(A)-5,Mumbai, dated 11.02.2019, pertaining to assessment year 2010-11.

2. The Grounds of appeal raised by the assessee read as under:

“1. The Ld. CIT(A) erred in confirming the order of Ld. AO in treating
revenue expenditure of Rs. 29,61,040/- as Capital in nature;

2. The Ld. C1T(A) erred in upholding the disallowance made by Ld. AO of expenditure on account of Stamp duty and mortgage charges of Rs.21,31,120/- and Rs. 8,30,920/- respectively on the ground that these are nonrecurring expenditure made towards acquisition of assets and hence capital in nature;

3. The Ld. CIT(A) erred in not appreciating the fact that during the year there were no additions made in the capacity of Fixed Assets/ lease assets.”

3. The solitary issue in this appeal relates disallowance of revenue expenditure incurred on stamp duty amounting to Rs 21,31,120/- and mortgage charge amounting to Rs 8,30,920/- for obtaining loan. The Assessing Officer held it as capital expenditure as the loan was for acquiring capital asset.

4. Upon assessee’s appeal, learned CIT(A) confirmed the disallowance observing as under:

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