9911796707
TMI Blog2017 (11) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... e, if the expenditure is related to setting up of any property, the expenditure needs to be capitalized and the assessee be accordingly given the depreciation thereon or if the property is under development, the expenditure needs to be added to the cost of the project. Hence, we remit this issue to the file of the A.O. to examine the issue and decide as per the direction given hereinabove. Stamp duty and registration charges - Held that:- No mention whatsoever has been given by the ld. CIT(A) for disallowing the expenditure except mentioning that it is not the revenue expenditure. When the assessee had made the expenditure on account of stamp duty and registration charges, as the incentive scheme by duly advertising the same, we do not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A.Y.) 2012-13. The grounds of appeal read as under: 1. Addition ₹ 15,05,265/- disallowed u/s 37 (1) of The Income Tax Act, 1961: a. Professional Fees of ₹ 10,52,000/-: On the facts and in the circumstances of the case, the Appellant submits that the Hon. Commissioner of Income Tax (Appeals) has erred in upholding the disallowance of the professional fees of ₹ 10,52,000/- made by the Learned Assessing Officer. The Appellant submits that the professional fees of ₹ 10,52,000/- be allowed. b. Stamp Duty of ₹ 2,28,4007- and Registration Charges of ₹ 1,28,4507-: On the facts and in the circumstances of the case, the Appellant submits that the Hon. Commissioner of Income Tax (Appeals) has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stamp duty registration charges and the same were not required to be recovered from the purchase parties. The agreements on which stamp duty registration charges were paid were recorded. 3. The A.O. was not satisfied and made disallowance of the impugned expenses by observing as under: The contention/submission of the assessee company is considered but not found acceptable for the reasons as the said expenditure are not revenue expenditure and hence not allowable u/s 37(1) of the I.T. Act. Also, interest on delayed payments to the parties and interest on TDS are in penal nature cannot be allowed as business expenditure, therefore, same are also disallowed. Penalty proceedings initiated u/s 271(l)(c) r.w.s. 274 of the I.T. Act sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at no reason whatsoever for this assumption of the ld. CIT(A) is on record. It is clear that the fee paid includes expenditure for attending court matters, etc. This by no stretch of imagination can be considered to be expenditure of enduring benefit. Furthermore, if the expenditure is related to setting up of any property, the expenditure needs to be capitalized and the assessee be accordingly given the depreciation thereon or if the property is under development, the expenditure needs to be added to the cost of the project. Hence, I remit this issue to the file of the A.O. to examine the issue and decide as per the direction given hereinabove. 9. Stamp duty and registration charges On this issue, the ld . CIT ( A ) noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal. Against the above order, the assessee is in appeal before the ITAT. 11. Upon hearing both the counsels and perusing the records, I find that no mention whatsoever has been given by the ld. CIT(A) for disallowing the expenditure except mentioning that it is not the revenue expenditure. When the assessee had made the expenditure on account of stamp duty and registration charges, as the incentive scheme by duly advertising the same, I do not see any reason as to how the same cannot be treated as revenue expenditure. This expenditure is in relation with the flat which the assessee deals in and the same is its stock-in-trade. Hence, the expenditure related to the sale of the item in which the assessee deals in, can by no stretch o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
