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2015 (1) TMI 864 - AT - Income TaxDisallowance u/s 40A(2)(b) - business centre charges and administrative charges - Held that:- In the absence of any specific finding given by the Assessing Officer by the CIT(A) regarding the fair market value/fair market price of the services, the payment made by the assessee to the sister concern on account of using the business centre facility cannot be held as excessive or unreasonable. Further it is not the case of the Assessing Officer that by making the payment to the sister concern the assessee is avoiding the tax liability as the sister concern is not assessed to tax. Accordingly, we delete the disallowance confirmed by CIT(A) on this account for both the years. - Decided in favour of assessee. Disallowance of deduction u/s 80-IB in respect of other income received by the assessee from the buyers of the flat - Held that:- Following the rule of consistency, all income received in relation to the activity, which are having direct nexus with the project as Extra work,Interest from flat buyers for late payment,Car parking, Grill charges and Video door security charges are eligible for deduction u/s 80-IB except share money, society formation charges, electricity meter charges, water meter charges, legal charges and maintenance charges for 12 months which are all post completion of project activity and cannot be treated as part of the construction project. Accordingly, the income in respect of above said work are not eligible for deduction u/s 80-IB. Since the other income received for A.Y. 2006-07 is only regarding society formation and share money, therefore, the same is not eligible. - Decided in favour of assesse. Proportionate allocation of indirect expenses - Held that:- indirect expenses should be apportioned in proportion to the cost incurred on various projects during the year, as represented by the work in progress in the different projects. The figures supplied by the assessee before us however need verification. We therefore restore the issue to the file of the Assessing Officer for the limited purpose of verifying the figures of work in progress in the various projects undertaken by the assessee. - Decided in favour of assessee for staistical purposes.
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