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TMI Blog2014 (1) TMI 1716X X X X Extracts X X X X X X X X Extracts X X X X ..... the routine business expenses including the expenses in question incurred during the post survey period were debited to profit and loss account. The issue involved in the present case as well as all the material facts relevant thereto thus are similar to the case of M/s. Shreeshay Engg. Pvt. Ltd. (2014 (1) TMI 876 - ITAT MUMBAI) and respectfully following the decision of the coordinate bench of this Tribunal rendered in the said case, we set aside the impugned order of the learned CIT(A) on this issue and restore the matter to the file of the AO with a direction considered and allow the claim of the assessee for the impugned expenses as regular business expenses on merit after necessary verification. - ITA No.572/Mum/2011 - - - Dated:- 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofits, the same may be capitalized as part of WIP. 2. The asssessee in the present case is a company which is engaged in the business of Development and Construction of Real Estate. A survey action u/s.133A was carried out in the case of the assessee during the course of which income for the year under consideration of the assessee company was declared by its director in the statement recorded on estimated basis at ₹ 50 lacs. Subsequently, the return of income for the year under consideration was filed by the assessee on 31.10.2007 declaring total income of ₹ 16,49,811/- after deducting business expenses of ₹ 17,58,462/- from the income of ₹ 50 lacs, declared during the course of survey and thereafter adjusting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of M/s. Shreeshay Engg. Pvt. Ltd. Vs. ACIT vide order dated 20.06.2013 passed in ITA No.670/M/2011 vide paragraph no.6 which reads as under: 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 deducting provision for interest on unsecured loan of ₹ 16,00,000/- made on estimated basis, net profit on ₹ 1,42,00,000/- was worked out for the purpose of advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, misconceived the claim of the assessee for the said expenses as that of against the additional income of ₹ 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 expenses on merit after the necessary verification Ground no. 1 and 2 of the assessee s appeal are accordingly treated as allowed for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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