Disallowance of proportionate revenue expenditure - allocating ...

Court Directs AO to Allocate 25% of Project-Related Expenses to Work-in-Progress Account, Overruling 10% Ad Hoc Allocation.

December 26, 2018

Case Laws Income Tax AT

Disallowance of proportionate revenue expenditure - allocating adhoc 10% of other expenses to work-in-progress account - AO directed to allocate 25% of other expenses of as directly related to the project to be capitalized under the head ‘work-in-progress account’.

View Source

← Previous Next →

Disallowance of proportionate revenue expenditure - allocating ...

Court Directs AO to Allocate 25% of Project-Related Expenses to Work-in-Progress Account, Overruling 10% Ad Hoc Allocation.

December 26, 2018

Case Laws Income Tax AT

You may also like:

Disallowance of project expenses - Addition on the ground as no project-wise accounting was available and no work-in-progress was reported - As the assessee is engaged...

Disallowance of interest expenses u/s. 36(1)(iii) - disallowance of financial cost attributable to capital work in progress and project work in progress - In case, the...

Annual letting value (ALV) of unsold residential units treated as stock-in-trade was added as income from house property. CIT(A) deleted the addition. High Court...

Deduction u/s 80 IB (10) - allowable expenses to project - Since all the administrative expenses cannot be linked to the activities reasonably, it can be allocated...

Claim of expenses disallowed u/s 37(1) - expenditure/loss incurred on abandoned project – for the first two years the expenditure is shown as “work-in-progress” - claim...

Disallowing the expenses on the reasoning that corresponding income was not offered to tax - matching principles of the accounting treatment - part of the activity of...

Revenue expenditure vs WIP - business of Real Estate - expenses not related to the work in progress and debited to the P & L account being administrative expenses and...

Deduction u/s 80-IB(10) - manner of allocating the common expenses - the financial positions of the assessee will represent distorted position if the common expenses are...

Reversal of profits declared in earlier years on account of estimated loss expected - valuation of work in progress (WIP) - The matching principle requires recording...

Disallowance of interest expenses u/s.36(1)(iii) - Once project is abandoned, it seizes to become eligible asset to capitalize borrowing cost to the work in progress...

Disallowance of job work expenses - there is a direct relation between the amount of sales viz a viz the job work charges incurred by the assessee, therefore such...

Disallowance of interest relating to Capital Work in Progress (CWIP) - The Appellant has furnished the relevant working capital facility agreements and ledger account to...

Deduction of interest expenditure of INR u/s 36(1)(iii) - the Assessee has undertaken only one redevelopment project. It is not disputed that interest cost is directly...

Unexplained reduction in closing work in progress - As there was a difference on account of change in following of accounting standard from AS 7 to AS 9 in the valuation...

Unexplained expenditure - certain entries were found unmatched / not accounted for in the books of accounts in the expense ledger of the assessee - The assessee...

Quick Updates: