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TMI Blog2013 (4) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not assume so much of significance so as to made disallowance of Rs 50 lakhs, when the genuineness and business connection to the Gagan Gallaxy project is established. As such the AO does not have any incriminating material in his possession to demonstrate that the impugned expenditure is incurred in connection with any other project. It is the case of wild allegation against the assessee that the said expenditure is not incurred for Gagan Gallaxy Project and such allegation should only be made when the AO has some incriminating material in his possession. Therefore, no reason to interfere with the order of the CIT (A). - I.T.A. NO.3829/M/2011 - - - Dated:- 15-2-2013 - Dinesh Kumar Agarwal And D. Karunakara Rao,JJ. For the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e incurred if the project is really completed on 12.12.2006, AO came to the conclusion that this amount of Rs.63,57,839/- was incurred after the project is completed and the said expenditure does not pertain to the project 'Gagan Galaxy'. He, however, restricted the disallowance to only Rs. 50 lacs as part of his best judgment assessment. Further, he also disallowed a sum of Rs. 2 lacs for want of vouchers. Of course, the AO invoked the provisions of section 145(3) of the Act for non-maintenance of stock register and also for want of certain clarification relating to some inaccuracies alleged by the AO as per the discussion given in para 2 of his order. Aggrieved with the above order of the AO ie disallowance of Rs 52 lakhs, the assessee fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is a customary, in this line of activities, the assessee-builder makes an application to the CIDCO for want of Completion Certificate and it is not that no expenditure incurred once an application for such completion certificate is made by the Assessee. Further, he mentioned that the date 12.12.2006 is an artificial date, making of the payment is continuous process and it continues till the project is literally complete. Otherwise, the impugned payments were made to the labourer for the services rendered to the project before and after the said 12th December 2006 and also to the other suppliers towards the purchase of raw material used in the past for the construction of Galaxy Project only. He relied on the bills filed before us. Mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, normal requirement of finished work, miscellaneous works at compound wall, terrace, underground, overhead water tanks, re-adjusts, minor changes, repetition, re-finishing, electrical work, plumper work and other related works are done continuously up to handing over the flat. Even in some, cases, after handing over of flat, builder has to do hundreds of miscellaneous work like fitting of aluminium sliding, paving work, development of surrounding area, front gate works, miscellaneous pending works and so on. Therefore, I find no substance in the argument of Ld AO that after submission of letter dated 13.12.2006 by the architect to the local authorities for obtaining completion certificate, no such work could have been done. It appears fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, should not assume so much of significance so as to made disallowance of Rs 50 lakhs, when the genuineness and business connection to the Gagan Gallaxy project is established. As such, we find that the AO does not have any incriminating material in his possession to demonstrate that the impugned expenditure is incurred in connection with any other project. It is the case of wild allegation against the assessee that the said expenditure is not incurred for Gagan Gallaxy Project and in our opinion, such allegation should only be made when the AO has some incriminating material in his possession. Therefore, we find no reason to interfere with the order of the CIT (A). Regarding the addition of Rs 2 lakhs, we find that the said disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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