TMI Blog2012 (10) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... . In order to ensure appropriate compliance with the directions of the co-ordinate Bench remit the case back to the assessing authority. Issue remand back to AO - I.T.A. No.71/MDS/2012 - - - Dated:- 19-7-2012 - SHRI ABRAHAM P. GEORGE AND SHRI S.S. GODARA, JJ. Department by : Shri KEB Rengarajan, JCIT. Assessee by : Shri Vikram Vijayaraghavan, Advocate ORDER PER BENCH : This appeal of the Revenue is directed against the order of the CIT(Appeals)-III, Chennai, dated 28.10.2011 passed in ITA No.722/2010- 11/A.III for Asst. Year 2004-05. The relevant proceedings are under sec.143(3) read with sec.254 of the Income Tax Act, 1961, in short the Act . 2. The only substantial ground raised by the Revenue is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on scientific method. Since, the period of five years has already expired and by this time the actual expenditure would have already been incurred in respect of the provision made by the Assessee, we set aside the orders of the lower authorities, qua this issue and remit the same to the record of the Assessee for proper verification and examination and accordingly pass E fresh order after giving an opportunity to the Assessee. 6. In this manner, though the Co-ordinate Bench accepted the Assessee s claim regarding allowability, only embargo as stipulated was that its correctness of the estimation had to be based on scientific method adopted by Assessee. 7. In remand proceedings, the Assessing Officer again took up the matter as direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it had transferred a substantial amount towards maintenance deposit, and after transfer, the amount of actual expenditure incurred by the Assessee towards balance work covers the claim under the provisions for expenses other than maintenance. Therefore, per Assessing Officer the Assessee had collected substantial amounts towards maintenance deposit under the head maintenance deposits at the rate of Rs.100/- per sq. ft. and interest earned from said corpus had to be realized towards common maintenance charges. Hence, it could not be said that estimation of Rs.3.50 crores (supra) was based on any scientific method. Regarding transfer of the amount with effect from 01.1.2006 to the Assessee s sister concern, M/s. Jayabheri Properties an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for acceptance of the appeal. On behalf of the Assessee the AR strongly supported the findings of the CIT(Appeals). 12. We have heard both representatives and also perused the relevant paper book which comprises Basis for maintenance expenditure, Expenditure incurred for Jayabheri Silicon Country during Asst. Year 2005-06, Profit and Loss account of Jayabheri Properties as on 31.3.2005, Provision for expenses as on 31.3.2006, Profit and loss account of Jayabheri Properties Services Pvt. Ltd as on 31.3.2007, Profit and Loss account of Jayabheri Properties Services as on 31.3.2009 and Agreement for finishing works of flats/Duplex premises. The factual position of the case is not in dispute. This is the second round of litigation. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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