Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1586 - ITAT DELHIReceipt of advances - allowability of the expenses towards cost of land and development charges - CIT(A) held that as per accounting principles the true and correct income which could be taxed in the hands of the assessee company would be after deduction of relevant expenses as shown by the assessee only during first appellate proceedings - Held that:- We note that the assessee raised the issue of allowability of the expenses towards cost of land and development charges in A.Y. 2005-06 during first appellate proceedings. We also note that the CIT(A) did not afford another opportunity to the AO to submit his remand report and to comment upon the merits of the claim, explanation and submission of the assessee which were not submitted during assessment proceedings. The AO was not allowed to comment upon said claim, explanation and submissions of the assessee on merits and the CIT(A) considered and accepted the same in contravention of Rule 46A(3) of the I.T. Rules, 1962. Thus this issue requires proper examination and verification at the end as to whether the land and development charges were included in the amount of liabilities which was assessed as income of the assessee for the year under consideration on the basis of statement of Shri Sunil Sharma the Director of the company recorded u/s 131. The AO shall also verify and examine that whether the amount of ₹ 1,07,87,357/- was not reconciled while computing the trading results of the assessee for A.Y. 2005-06. Therefore, the only issue raised by the Revenue in this appeal is restored to the file of AO for denovo adjudication - Decided in favour of assessee for statistical purposes.
|