9911796707
|
Home
Issues involved: Appeal against order of CIT u/s 263 for AY 2007-08.
Details of the judgment: 1. The assessee, engaged in construction and maintenance of a golf course, held a lease for 235 acres of land from APIIC. The lease required the assessee to develop various facilities and pay lease rent based on gross annual revenue. Due to global recession, residential development plans were delayed. The assessee transferred its business to Emaar MGF Land Ltd. 2. The assessee reported a loss in its return after claiming depreciation. The Assessing Officer accepted the business had commenced and did not disallow certain expenses. However, the CIT u/s 263 found the AO's order erroneous and prejudicial to revenue interests, directing verification of depreciation claim, capitalization of expenses, treatment of prior period expenditure, and allowability of expenses without revenue receipts. 3. The assessee contended that even without revenue, the business had commenced as the infrastructure was in place. The CIT's revision was challenged, arguing that the AO's decision was correct based on the business setup. The DR supported the CIT's order. 4. The ITAT noted discrepancies in the assessee's income computation and upheld the CIT's order u/s 263. The CIT's application of a previous apex court judgment was deemed appropriate. The appeal was dismissed, affirming the CIT's decision. 5. The appeal was dismissed, confirming the CIT's order u/s 263.
|
