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2012 (8) TMI 455 - ITAT, MUMBAIDisallowance of expenses - salary, professional fees, compensation amount etc. - Held that:- The A.O. without pointing out any specific item of disallowable nature has made disallowance of Rs. 2 lacs on estimate basis and for the balance expenses, the A.O. enhanced the same in the work-in-progress. Since the expenses have been incurred for the purpose of business expenses and genuineness of the same has not been doubted the CIT(A) was fully justified in deleting the same. The grounds taken by the Revenue are therefore rejected - in favour of assessee. Addition to the income as not incidental to development activity of the uncompleted project - receipts on account of rent, maintenance charges and sale of scrap - Held that:- In the absence of any nexus in respect of rent from tenants and scrap sales of the project the ld. CIT(A) was not justified in treating the same as part of the work-in-progress thus accordingly the rent from tenants and scrap sales are to be treated as income of the year under consideration - against assessee.
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