9911796707
TMI Blog2018 (12) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the order of Ld. CIT (Appeals) - 2, Kolkata dated 11.05.2018. 2. Ground No. 1 raised by the assessee in this appeal is general which does not call for any specific adjudication. 3. The assessee in the present case is a company which is engaged in the business of real estate. The return of income for the year under consideration was filed by it on 26.09.2013 declaring a total income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessee in respect of expenditure incurred in relation to exempt income, the AO cannot vary the amount of such expenditure for the purpose of making a disallowance u/s 14A unless and until he, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the assessee. A perusal of the assessment order passed in the case of the assessee shows that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said expenses were not incurred wholly and exclusively for the purpose of assessee's business and he accordingly disallowed the same. He also disallowed security deposit of Rs. 1,65,530/- paid by the assessee to CESC and Post Delivery Expenses of Rs. 8,01,921/-. In this regard, he rejected the explanation of the assessee that the said expenses were incurred in connection with its business of devel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nda expenses made by the AO and confirmed by the Ld. CIT(A) is not sustainable. As regards the disallowance made on account of security deposit paid to CESC and Post Delivery Expenses, I find that the explanation offered by the assessee in this regard during the course of assessment proceedings was not appreciated by the Assessing Officer in the light of the nature of the business carried on by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of security deposit paid to CESC as well as Post Delivery work represented part of the project expenses incurred by the assessee and the same were allowable as deduction as rightly claimed by the assessee. I, therefore, delete the entire disallowance of expenses made by the AO and confirmed by the Ld. CIT(A) and allow Ground No. 3 of the assessee's appeal. 8. In the result, the appeal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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