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TMI Blog2014 (6) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the expenditure was capital, as corresponding income from the project was not recorded or brought to tax – the matter should be remitted to the AO for a fresh adjudication as to whether other expenses can be allowed as expenditure, in accordance with law, i.e. Accounting Standard as applicable, read with Section 145/145A of the Act – Decided in favour of Assessee. - ITA 506/2013 - - - Dated:- 11-12-2013 - MR. SANJIV KHANNA AND MR. SANJEEV SACHDEVA, JJ. For the Appellant : Mr. Prem Nath Monga with Mr. Manu Monga, Advocates. For the Respondent : Through Mr. Sanjeev Sabharwal, Advocate. ORDER CM No.16704/2013 (exemption) Exemption allowed subject to all just exceptions. CM No.16705/2013 (delay) For the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art development of a residential colony. But the appellant was not given the right to sell the land and no land was sold in the relevant year or in subsequent years. The land allotted to the assessee company was still under development. However, Commissioner (Appeals) contradicted himself when he observed that the project had not commenced and therefore the entire expenses relating to the project should be capitalized. 7. In the impugned order dated 11.01.2013, the tribunal has recorded as under:- 4.1 Coming to the facts of the present case, from the findings of the Assessing Officer, extracted supra, it reveals that the Assessing Officer has capitalized the expenses and added to the cost of the project. From the details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses 87,677.85 (viii) Miscellaneous expenses 13,179.00 (ix) Rent 55,000.00 (x) Repair and maintenance 23,507.25 4.2 These are the expenses which are necessary for day to day maintenance of the company. Therefore, the ground of appeal raised by the assessee is partly allowed. Learned Assessing Officer is directed to allow the above expenses to the assessee.? 8. It is clearly recorded in para 4.1 that business of the appellant assessee had been set up and therefore in accordance with law, expenses incurred had to be allowed. This means that expenses should be allowed as per acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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