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TMI Blog2002 (4) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... rued liability against the profit of the year under consideration?" The fact of the matter is as follows: The assessee is a registered firm. It carries on the business of construction and sale of flats in multi-storeyed commercial buildings. Allegedly, during the accounting period of the relevant assessment year, it had completed certain works. In its return, it claimed a deduction of Rs. 97,040 on account of provision of registration fee. The said claim was disallowed by the Assessing Officer stating: "No registration has yet been done and only provision of Rs. 97,040 is made. These cannot be allowed now as there is no such ascertained liability. Even in terms of the agreement these expenses appeared to be borne by the flat/shop owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel appearing on behalf of the assessee, on the other hand, would submit that the registration fee was claimed as 'expenses' although the same was not incurred during the period in question having regard to the fact that the assessee was maintaining its books of account on the mercantile basis. Learned counsel would contend that having regard to the fact that the sale price of the land has been taken on receivable basis, there is absolutely no reason as to why the registration charges would not be computed on payable basis for the purpose of determining the profit and loss during the relevant assessment year. In support of the said contention, reliance has been placed on CIT v. Lever Brothers (India) Ltd. [1959] 37 ITR 140 (Bom); M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the society or limited company if formed and otherwise proportionated by all the holders of flats/shops/godowns in the said building. The promoter shall not be liable to contribute any amount towards such expenses. The same will be the position regarding the lease to be executed by the Delhi Development Authority, if it is executed directly in favour of the company/society or incorporated body of buyers. The proportionate share of such expenses without loss of time the buyer shall along with the last instalment thereof deposit with the promoter a sum of Rs. 1,000 for each flat/shop/godown of area less than 500 sq. ft., Rs. 2,000 for area more than 500 sq. ft. but less than 1,000 sq. ft. and Rs. 3,000 for area more than 1,000 sq. ft. but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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