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2019 (10) TMI 351 - ITAT DELHIDisallowance of indirect expenditure claimed by the appellant as revenue/ period expenditure - HELD THAT:- CIT- A has identified each of the expenditure and isolated the expenditure based on the principle that the indirect expenses being period cost are allowable expenditure and there could be no justification for disallowing the claim of such expenses when the assessing officer himself has accepted and assess the revenue booked by the appellant during the year under consideration. He further referred to the accounting standard 7 issued by the Inst of chartered accountants of India wherein it has been stated that administrative and general expenses are not allocable or attributable to a specific contract and are to be considered as part of the contract cost and there should these expenses cannot be loaded to a particular contract. With respect to the allowability of the interest expenditure, the reliance was placed on the coordinate bench decision. He further held that sales and marketing expenditure are allowable indirect expenditure being a period cost but the commission expenses incurred for booking of the flats on various property is directly identifiable expenses of the specific project for which commission is paid to the dealer. In view of this we do not find any infirmity in the order of the learned CIT – A Claim of deduction u/s 80IB - CIT-A has held that assessee has placed contradicting facts about the size of the flats and therefore CIT-A directed the learned assessing officer to verify the factual position regarding the area of residential unit having a built-up area of up to 1000 ft² and grant the benefit of proportionate deduction accordingly - HELD THAT:- According to us, the learned CIT – A has valid reason to direct the learned assessing officer to verify the fact. It is not in dispute that assessee has given written submission that built-up area of the residential unit is 1164 and 144 6 ft². This fact has been reproduced by the learned CIT-A in paragraph number 5.2 of his order. Thus, we do not find any infirmity in the direction of the learned CIT- A to the assessing officer. Further, the direction for granting the proportionate deduction is also based on the several judicial precedents. In any case the order passed by the learned assessing officer u/s 250 of the income tax act giving effect to the order of the learned CIT – A passed on 30/3/2012 the learned assessing officer computed the same disallowance and thus the original disallowance made by the learned assessing officer stands. - Decided against revenue.
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