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TMI Blog2019 (11) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of such parties where in the receipt of money is reflecting was also placed on record. Further, a summary sheet reflecting the date of receipt of amount and the date of payment for flat is also submitted by the assessee. From the records it can be seen that the assessee had applied the fees amount towards the purchase of flat as per the terms agreed upon. It can further emerges from the records that the assessee had duly offered such receipt amount to its income on cash basis in accordance with its method of accounting which is also evident from the ledger accounts of such parties. CIT(A) was not right in sustaining the addition in respect of interest incurred on account of amount standing as advance in respect of interest incurred on account of amount standing as advance in respect of such parties. Therefore, the order of the CIT(A) is set aside. Ground No. 2(i) and 2(iii) are allowed. Addition on account of Vehicle Repair and maintenance - AR submitted that it is settled law that if the Assessing Officer has not pointed out any specific defect in the books of the assessee, and has not even pointed out the specific instances where the expenses have been incurred by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... projects. During the year under consideration, the assessee derived income from business or profession. The assessee filed its return of income on 28/09/2013, declaring total income at ₹ 2,37,36,341/-. Subsequently, the case was selected for scrutiny under CASS. Notice u/s 143(2) was issued and served upon the assessee within the stipulated period. Again notice u/s 142(1) along with detailed questionnaire was issued to the assessee. In response to the notices, Chartered Accountant/Authorised Representative of the assessee attended the assessment proceedings from time to time and filed necessary details, information/documents etc as required. Books of accounts and vouchers were produced during the course of assessment proceedings which were examined on test check basis. The income of the assessee is recomputed as under:- S. No. Particulars (Amount in 7) Income as per computation tiled by the assessee 72,37,36,341/- i. Disallowance of expenses which have not been paid in the relevant financial year 713,84,498/- II. Non grant of TDS Claims 15,88,890/-) NIL III. Disallowance of Interest 729,28,540/- IV. Disallowance on account of unverifiable bills/vouch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. The Ld. AR submitted that perusal of the same reveals that the assessee had applied the fees amount towards the purchase of flat as per the terms agreed upon. The Ld. AR further submits that had the assessee not applied towards the flat, it would not have been able to recover the fees amount. The Ld. AR pointed out that the assessee had duly offered such receipt amount to its income on cash basis in accordance with its method of accounting as evident from the ledger accounts of such parties. The Ld. AR submitted that the CIT(A)'s allegation that under the cash system of accounting, there is no debtor that exists in the books of accounts and no amount ought to be standing under the head current assets is incorrect appreciation of facts and has no relevance to the case. The Ld. AR submitted that the amount standing is not as debtor, but as advance towards flat. Further, with regard to allegation of the CIT(A) that the business of the assessee is to provide architectural services and amount advances to purchase flat cannot be considered to be business of the assessee, the Ld. AR submitted that it is not the case of the assessee that it is the business of the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order and the order of the CIT(A). 9. We have heard both the parties and perused all the relevant material available on record. From the perusal of records, it can be seen that payment was made from the current account held with the bank, are duly reflected in the ledger accounts. The details of party wise interest paid also reveals that no interest was paid to such bank. The said bank account is reflecting under the head current assets in the balance sheet. It is the case of the assessee that the assessee had to apply for the flat as a measure of commercial expediency in order to recover the fees amount. It was mutually agreed between the assessee and the respective parties that the payment for fees will be made subject to the condition that the assessee applies for allotment of flat. Thus, assessee had to apply for allotment of flat as a measure of commercial expediency. The ledger account of such parties where in the receipt of money is reflecting was also placed on record. Further, a summary sheet reflecting the date of receipt of amount and the date of payment for flat is also submitted by the assessee. From the records it can be seen that the assessee had applied the fees am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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