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2013 (4) TMI 341 - ITAT MUMBAIDisallowance of cash expenditure for purchase of raw material and freight charges - Provisions of section 145(3) invoked - assessee is a partnership firm engaged in building construction activities - Held that:- The expenditure in question is directly connected to the project Gagan Galaxy only and the AO has not appreciated this fact by closely examining the material available before him. Further, the CIT (A) allowed the claim of the assessee after examining the nature of the expenditure and the genuineness of the expenditure. The date of 12th December 2006 ie the date of application filed by the assessee for want of 'Completion Certificate' should not assume so much of significance so as to made disallowance of Rs 50 lakhs, when the genuineness and business connection to the Gagan Gallaxy project is established. As such the AO does not have any incriminating material in his possession to demonstrate that the impugned expenditure is incurred in connection with any other project. It is the case of wild allegation against the assessee that the said expenditure is not incurred for Gagan Gallaxy Project and such allegation should only be made when the AO has some incriminating material in his possession. Therefore, no reason to interfere with the order of the CIT (A).
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