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2017 (5) TMI 157 - ITAT MUMBAIBusiness loss - Disallowance of amount written off towards 380 sq.ft of transferable development rights as the same were not recovered and has become bad - Held that:- The partner in the assessee firm brought these TDR’s into the firm as its capital contribution and was treated as part of stock in trade over the years before being written off during the year. We are not in agreement with the conclusion the first appellate authority on this issue that claim of the assessee remained unsubstantiated. In our considered view the assessee has to be allowed write off of the said TDR when it finally became bad. But finding merit in the arguments of ld.DR that the documents relating to TDR were not before the AO and the matter should be restored back to AO for verification of claim of the assessee on the basis of the said papers. Therefore, it would be in the interest of justice, if the order of the FAA is set aside and the AO is directed to consider the issue of allocation of TDR denovo with fair and reasonable opportunity of hearing to the assessee. Accordingly, we set aside the order of Id. CIT(A) and direct the AO to decide the issue on the basis of material available on record and also evidence as supplied by the assessee in the set aside proceedings and allow the claim of the TDRs were found to be brought in by the partner as capital contribution. - Appeal of the assessee is allowed for statistical purposes.
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