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TMI Blog2015 (6) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... see on 26.12.2008 and Assessing Officer was further directed to verify business nexus of such expenses. For this purpose, Assessing Officer was free to call further details from assessee. Accordingly, Assessing Officer was directed to pass a speaking order about the genuineness of expenses incurred and business nexus thereof. According to us, having decided the main issue in favour of assessee by observing that it was not just and proper to deny the benefit of expenses incurred by assessee in the construction of multi storied mall. CIT(A) directed the Assessing Officer to make certain inquiries with regard to genuineness of expenses incurred and business nexus by passing speaking order. It amounts to setting aside the issue to Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case, the Ld.CIT(A) ought to have upheld the action of A.O.in disallowing the expenses from work-in-progress, as the assessee has not furnished any corroborative evidence to prove genuineness of the expenses as well as business nexus thereof. 4) On the facts and in the circumstances of the case and in law, the CIT(A)ought to have upheld the order and not directed the A.O. to verify the submission of the assessee ignoring that such direction amounted to setting aside of the assessment order which he no longer can do after 01/06/2001. 2.1 In Cross Objection No. 155/Ahd/2011 for A.Y. 2006-07, assessee has filed the appeal on the following grounds: The assessee being dissatisfied with the order passed by the CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wances are contrary to the facts and law. The assessee submits that each and every disallowance made by the assessing officer be quashed. The assessee submits that each and every expenditure was incurred and each and every expenditure was incurred for the project and therefore each and every expenditure is forming part of the project. The assessee submits that it be so held. 3. At the outset of hearing, learned Authorized Representative pointed out that he is not pressing Cross Objections in both the years because of subsequent development. In view of above, Cross Objections filed by assessee are dismissed as not pressed. 4. Coming to Revenue s appeal, briefly stated facts of case are that Gulmohar Park, a commercial project construc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006-07 Rs.8,52,34,051/- 2. 2007-08 Rs.7,74,27,638/- For both the Assessment Years involved, Assessing Officer has computed total income at Rs.Nil. However, Assessing Officer has carried out disallowance from work in progress account. He further mentioned that when project would be completed and business of assessee would commence, then, assessee would not be entitled to depreciation as well as other claims on these expenses which have been capitalized by assessee with the cost of project. 4.2 Matter was carried before the First Appellate Authority, wherein effective grounds relate to disallowances of ₹ 8,52,34,051/- in A.Y. 2006-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses incurred and claimed by the appellant in A.Y. 2006-07 and A.Y.2007-08 as per the details submitted by the appellant on 26.12.2008. The Assessing Officer is further directed to verify the business nexus of such expenses. For this purpose, the Assessing Officer is free to call for any further details from the appellant. The Assessing Officer is directed to pass a speaking order about the genuineness of expenses incurred and business nexus thereof. These grounds of appeal are disposed off accordingly. 4.3 Grievance of Revenue before us is that CIT(A) erred on facts in directing the Assessing Officer to pass order while giving effect to CIT(A) s order after verifying part details furnished by assessee during assessment proceeding and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer was free to call further details from assessee. Accordingly, Assessing Officer was directed to pass a speaking order about the genuineness of expenses incurred and business nexus thereof. According to us, having decided the main issue in favour of assessee by observing that it was not just and proper to deny the benefit of expenses incurred by assessee in the construction of multi storied mall. CIT(A) directed the Assessing Officer to make certain inquiries with regard to genuineness of expenses incurred and business nexus by passing speaking order. It amounts to setting aside the issue to Assessing Officer which is not permitted. Accordingly, we set aside the order of CIT(A) and restore the issue to him with direction to deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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