9911796707
TMI Blog2013 (7) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... emand report of the Assessing Officer. There were certain expenses incurred by the Assessee, even after completion of the project which were claimed by the Assessee. The disallowance pertaining to the expenses which were supported with bills etc. has rightly been deleted by the CIT(A) whereas the disallowance of expenses which were not supported with proper bills have rightly been sustained by the CIT(A). The finding of the CIT(A) on this issue is hereby upheld. Disallowance of maintenance, telephone, vehicle etc. - CIT(A) sustained part disallowance - Held that:- CIT(A) has held that the disallowance of 20% made by A.O. was right and also sustained the said addition made by the A.O. towards Vehicle expenses as well as telephone expenses, however he has deleting the disallowance made by the A.O. under the head 'Repair and Maintenance'. The revenue has not contested the deletion of the disallowance under the head 'Repair & Maintenance' rather revenue has appealed against the deletion of 20% depreciation on motor car expenses which in fact has not been deleted by the CIT(A), rather has been sustained. Appeal of revenue dismissed. - ITA. NO.4314/Mum/2011 - - - Dated:- 30-4-2013 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le as revenue expenses. 2) Vide letter no. SRA/Eng/995/N/PL/LOI dt. 10.12.2004, the Slum Rehabilitation Authority has put a condition "That you shall pay total amount of Rs. 3920000/- towards deposit to be kept with SRA at the rate of 20000/- per tenement and total amount of Rs. 3761190/- @Rs. 560/- per sq. met. Towards Infrastructural development charges for additional chargeable built up area 6716.41 sq.mt." It makes evidently clear that it is an deposit hence by no means it shall be allowable as expenses. 3) Slum Rehabilitation Authority vide letter SRA/che/386/N/Pl/sale bidg dtd.24.07.07 has given part occupation for wing A B whereas the charges paid in deposits slips is pertaining to sale bldg B-3 C wing Rehab Bldg No.2, Rehab Bldg B-4." 4. The learned CIT(A) partly allowed the appeal of the Assessee and deleted the disallowance on account of SRA charges to the tune of Rs. 37,85,366/-. However, the disallowance to the tune of Rs. 18,56,700/- was confirmed observing as under:- "5.1 During the appellate proceedings the appellant has challenged the same on two accounts; firstly that these charges were incurred as TDR was acquired and sold in the same financial year. As pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id for getting this TDR being deposited remain capital expenditure and hence cannot be claimed as revenue expenditure against TDR sale. In view of this the SRA charges in the nature of maintenance deposits of Rs. 7,36,700/- and Rs. 11,20,000/- totaling to Rs.18,56,700/- are to be disallowed and hence this addition of Rs. 18,56,700/- is confirmed. Coming to balance charges of Rs. 37,85,366/- expenses debited under SRA charges i.e. Rs. 37,85,366/-. It is seen that in the instant assessment year appellant has sold flats, shops, parking area, meter and others also during the year and against the same expenses incurred by way of various SRA charges which are revenue in nature amounting to Rs. 37,85,366/- are allowable and hence allowed. Accordingly ground No. 1 is partly allowed." 5. The Ld. D.R. before us has submitted that the entire SRA amount of Rs. 56,42,066/- was in the nature of capital expenditure and as such the Ld. CIT(A) wrongly deleted the disallowance of Rs. 37,85,366/- out of the said amount treating the same as revenue expenses. It can be observed that the Ld. CIT(A) after proper application of mind has bifurcated the SRA expenses into two categories i.e. one which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - and shown as outstanding as on 31.03.2007. Confirmation of the assesee and copies of purchase bills produced iii) R Sanghavi Co. Purchases shown at Rs. 2,55,065/- and payment has been made through cheque. Outstanding is Nil in this case iv) Ruchi Ceramics Purchase Rs. 2464/- payment made in cash. v) Lucky Steels Traders Purchase Rs. 3620/- and payment made through cheque vi) Metro Enterprises Purchase Rs. 7231/- and payment made in cash In respect of Rs. 191652/- being amounts paid to various parties as listed in Page No. 23 to 26 of additional evidences forwarded along with remand report, copies of bills and details of payments made were not furnished and hence the same could not be verified. Further, the assesee has also not furnished any details in respect of amount of Rs. 36465/- being payments made to others as per assessment order (Page 4). Submitted." 8. The appellant also furnished his written explanation in response to the said remand report. After considering the remand report as well as written reply filed by the appellant, the Ld. CIT(A) sustained the disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the date of Occupation Certificate i.e. 24.07.2007. Then these expenses have been incurred in cash as well as cheque. From the bills it is seen that they all are not delivered to the project site of Rajendra Enterprises, Proprietary concern of the appellant for example Bill No. 986 of Ruchi Ceramic Centre shows the address as 'Sawanth Saheb'. In view of this it cannot be said that they have been incurred for the purpose of project only and hence purchases made reflected as for stores as well as others amounting to Rs. 2,28,117/- is sustained out of disallowance of building material purchase claimed at Rs. 6,38,75/-". 9. It may be observed that the Ld. CIT(A) separately dealt with each type of expenses in view of the evidence and explanation furnished before him by the appellant and also taking into consideration the remand report of the Assessing Officer. There were certain expenses incurred by the Assessee, even after completion of the project which were claimed by the Assessee. The disallowance pertaining to the expenses which were supported with bills etc. has rightly been deleted by the Ld. CIT(A) whereas the disallowance of expenses which were not supported with proper bi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
