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TMI Blog2022 (1) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... tal work in progress for the year ended 31.3.2011 and we note that most of the work pertains to labour charges paid for cleaning and leveling of land. It is also a case in point that neither in the immediately preceding assessment year nor in the assessment year under consideration, the assessee has claimed the impugned amount as expenditure but has capitalized the same. A plain reading of section 69C would show that a rigours of this provision are attracted in the financial year in which the assessee has incurred an expenditure and where he offers no explanation about the source of such expenditure. However, in the present case, neither has the impugned expenditure been incurred in the assessment year under consideration nor is it the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer noted that there were additions to the fixed assets amounting to ₹ 5,20,000/,- (as was reflected in the balance sheet). The assessee was required to furnish the details of addition to fixed assetsalong with documentary evidences. In response, the assessee submitted that the assessee had not incurred any expenditure on addition to fixed assets but had transferred the impugned amount from capital work-in-progress account to the fixed assets account. The assessee was again required to submit documentary evidences in respect of the same. It was submitted by the assessee that expenses were in respect of cleaning, leveling and filling of land. However, since the assessee did not furnish details of the parties to whom these amounts wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appreciating the fact that in the instant case there is no dispute with regard to the source of capital expenditure and it is also not in dispute that the assessee incurred expenditure and it is not the case of Revenue that the assessee claimed such expenditure as business expenditure. c. The Assessing Officer has wrongly interpreted the provisions of section 69C of the Income Tax Act, 1961 by ignoring conditions precedent for invoking the provisions of section 69C. Therefore, the addition is liable to be fully deleted. 4. The appellant craves leave to add and alter grounds of appeal at the time of hearing. 3.0 The Ld. Authorised Representative (AR) drew our attention to the copy of balance sheet of the assessee placed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the addition to fixed assets is merely a transfer entry. 5.1 We have also gone through the copy of the ledger account for the capital work in progress for the year ended 31.3.2011 and we note that most of the work pertains to labour charges paid for cleaning and leveling of land. It is also a case in point that neither in the immediately preceding assessment year nor in the assessment year under consideration, the assessee has claimed the impugned amount as expenditure but has capitalized the same. We also note that the Assessing officer has made the addition u/s 69C of the Act which reads as under:- 69C. Where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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