9911796707
TMI Blog2014 (1) TMI 1725X X X X Extracts X X X X X X X X Extracts X X X X ..... period are regular business expenditure which mainly includes provision made for depreciation and interest on the last date of the previous year. The assessee has also filed the profit and loss account for the year under consideration at page 26 of the paper book which clearly shows that the income of ₹ 50 lacs surrendered during the course of survey was separately declared as its income by the assessee and the routine business expenses including the expenses in question incurred during the post survey period were debited to profit and loss account. Thus 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence if the Business Expenses of ₹ 17,58,462/- are not allowed as a deduction for computing business profits, 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 ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. As submitted by the learned counsel for the assessee, a similar issue has been decided by the Tribunal in 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,00,000/- 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 ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
