9911796707
TMI Blog2014 (4) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of accounts A.O. made additions in as many as 21 items and determined the total income at Rs.2,97,18,633/- as against Rs.1,46,36,566/- returned by the Assessee. In the course of appellate proceedings before the Ld. CIT(A), assessee made elaborate submissions which were sent to the A.O. for a remand report. After obtaining the remand report from the A.O. and also comments from the assessee, Ld. CIT(A) gave substantial relief on all the issues. Assessee is not in appeal whereas Revenue is aggrieved on only three items, which are contended as under : "2. The Ld. CIT(A) erred in allowing the expenditure of capital nature as revenue expenditure in spite of the provisions of section 37(1) of I.T. Act which clearly specifies the nature of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure of Rs.164850 being balance amount after appropriating the said expenditure year on year in the earlier years. The entire expenditure is completely revenue in nature since it is incurred for carrying out the development activity of the construction project in which the firm is engaged. It is relevant to note here that the entire amount spent was claimed in earlier years also and the one claimed in this is the remaining amount. It is also observed that such claims of the appellant which were not allowed by the A.O. were allowed in appeals. Thus, given the facts and circumstances of expenditure, in my opinion, the A.O. could have allowed the same and hence, he is accordingly directed to allow the same now." 4.2. Since the Ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itle documents which other wise would have costed the firm with substantial expenditure by way of commission. In reciprocation, during the course of business the firm had temporarily helped them with an advance part of which was refunded later. In view of the commercial expediency, it has become inevitable to consider their request for temporary advance, on which no interest was charged. The impugned transaction has a business nexus and business connection and hence, in my humble opinion, charging of notional interest is not warranted and accordingly, the AO is directed to delete the same". 5.2. Since there is finding that amount advanced was in view of commercial expediency, that too after examining the assessee's submissions and remand r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1,00,00,000 involved as per this slip and thus concluded that income chargeable to tax to the extent of Rs.1,00,00,000 was not disclosed by the appellant and made 'the impugned addition of Rs.1100,00,000. In course of the appellate proceedings, the AR has highlighted 2 points. Point one relates to addition of Rs.1, ,25,00,000 in the assessment year 2006-07 by the AO from the same slip found during the course of survey, which the CIT(A)-III, Hyderabad in the order in ITA No. 0215/CIT(A)-1I1/0B-09, dated 26.03.2009 has deleted. A copy of the said order filed was perused and placed on record. Hence, it is contended that the same should be true for the impugned assessment year also. Point two relates to the information furnished by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat similar additions made in A.Y. 2006-07 on the basis of same document were deleted by the CIT(A), which was also subject matter of appeal before the ITAT and ITAT vide its order in ITA. No. 594/Hyd/2009 dated 07.03.2013 held that the document was dumb document and without any corroborative material amount cannot be brought to tax. Since the deletion of addition by the CIT(A) in earlier year on the same document is upheld by the ITAT, there is no merit in the Revenue's contention. 6.3. We have considered the issue and perused the said document on the basis of which addition was made and also statement of Mr. K. Gopalakrishna dated 11.01.2008 placed on record by the learned D.R. After considering the same, we do not see any reason to inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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