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TMI Blog2014 (2) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs being income declared during survey and consequent disallowance of business expenses of Rs. 1,33,544/-. In Ground No. 3, the assessee has agitated the action of the Ld.CIT(A) in confirming the action of the AO in not allowing set off of the brought forward business losses and unabsorbed depreciation of the earlier years being assessment years 2005-06 and 2006-07 to the extent of Rs. 5,34,803/- 4. Briefly stated, the assessee, a company engaged in the business of builders & developers and of civil construction who followed the method of accounting as per section 145 of the Income-tax Act, in respect of the revenue generated from business activity and revenue on sale of presidential premises. A survey was conducted under section 133A o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the expenses are to be allowed by AO after verification. The said decision is also followed in the case of M/s. Patel Builders and Developers Pvt. Ltd. vs. ITO in ITA No. 572/M/2011 vide order dated 03.01.2014. The relevant findings of the Tribunal in the case of M/s. Shrreshay Enng. Pvt. Ltd is extracted hereunder:- "6. We have heard the arguments of both sides and also perused the relevant material on record. The ld. Counsel for the assessee has invited out attention to the statement of estimated profit prepared for the purpose of advance tax as on 15.03.2007 given on page no. 73 of his paper-book to show above the basis of the said estimate. In the said statement, profit as per trial balance was taken at 1.58,00,000/- and after dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was estimated at Rs. 1,42,00,000/- as on 15.03.2007 for advance tax purpose to that extent. It appears that the AO and the Ld.CIT(A), however, misconceived the claim of the assessee for the said expenses as that of against the additional income of Rs. 15,00,000/- declared during the course of survey and made disallowance of the said expenses on the basis of this misconception without considering or examining the said claim on merit being the claim for regular business expenses of post survey period against regular business income. We, therefore, set aside their orders on this issue and restore the matter to the file of the AO with a direction to consider and allow the claim of the assessee for the impugned expenses as regular business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, moved an application u/s 154 before the AO for considering the said claim and taking the note of this, the Ld.CIT(A) directed the AO to dispose of the said application filed by the assessee u/s 154 expeditiously. Since the AO has still not disposed of the said application despite the specific direction given by the Ld.CIT(A), the Ld. Counsel for the assessee has urged that a direction may be again given to the AO to dispose of the application filed by the assessee u/s 154. We, accordingly direct the AO to dispose of the application filed by the assessee u/s 154 expeditiously without any further delay. Ground No. of the assessee's appeal is accordingly treated as allowed for statistical purpose." In view of the similar facts invo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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