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TMI Blog2023 (3) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... he co-ordinate bench has also laid its hands on the proposition laid down by the Hon ble Gujarat High Court in allowing the business expenditure and the criteria for the eligibility of claiming of the expenditure which are expended for the purpose of business. As this issue has been already dealt with by the co-ordinate bench for A.Y. 2016-17 [ 2022 (8) TMI 1355 - ITAT MUMBAI] we do not find any justification in deciding otherwise. Charging of 35% of the total receipts from on-money on the basis of the order of the Hon ble Settlement Commission passed u/s. 245D(4) - An assessee s case for A.Y. 2016-17, on similar facts the Tribunal has held the addition on on-money to be restricted to the extent of 35% of the total on-money by stating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Hon ble Income Tax Settlement Commission u/s. 245D(4) of the Act. 3. The appeal is time barred by two days for which the learned Departmental Representative (ld. DR for short) had prayed for condoning the said delay by relying on the decision of the Hon'ble Apex Court in the case of suo moto Writ Petition No. 3 of 2021, where the limitation period was extended. We hereby condone the delay of two days as there was sufficient cause for the delay. 4. The brief facts are that the assessee is engaged in the business of development of real estate projects and other related ancillary activities. The assessee company filed its return of income dated 14.09.2017, declaring a total loss of Rs.69,03,234/- and book loss u/s. 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntities of the India Bulls group. 6. Aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us. 7. The ld. DR for the Revenue contended that the A.O. had disallowed the same due to the fact that the assessee had not earned any revenue during the impugned year and that the assessee has failed to submit the details or explanation for justifying the allowability of the expenses. The ld. DR further stated that the A.O. has allowed the same to be capitalized to work in progress (WIP) account. The ld. DR relied on the assessment order. 8. The learned Authorised Representative (ld. AR for short) for the assessee, on the other hand, controverted the same and stated that the impugned expenses are in the nature of sales ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions and perused the material available on record. It is evident that the co-ordinate bench has allowed the expenditure claimed on advertisement, sales and marketing by the assessee for A.Y. 2016-17 which was disallowed by the A.O. and allowed by the ld. CIT(A) in appeal by the assessee. The coordinate bench has placed reliance on the decision of the ld. CIT(A) who has in turn relied on the proposition laid down by the Hon ble Gujarat High Court in the case of Smt. Virmati Ramkrishna vs. CIT [1981] 131 ITR 659 and the Tribunal has held that the said expenses was allowable as business expenditure as per the provision of section 37 of the Act in which case also the A.O. has not questioned the genuinity of the expenses. The Hon ble Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounted income , as against 10% of gross onmoney offered by the said entities. The ld. CIT(A) restricted the addition on on-money amounting to Rs.2,92,66,175/- to 35% of the total amounting to Rs.1,02,32,661/- on the ground that the Hon ble Settlement Commission s order pertaining to other entities were on similar facts as that of the assessee and thereby deleted the balance addition amounting to Rs.1,90,03,513/-. It is also pertinent to point out that in assessee s case for A.Y. 2016-17, on similar facts the Tribunal has held the addition on on-money to be restricted to the extent of 35% of the total on-money by stating that the order of the Hon ble Settlement Commission is appealed before the Hon'ble High Court, does not bar the ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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