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2019 (1) TMI 143 - AT - Income TaxAddition on account of the cost of the project overruled - according to the revenue, is nothing but to claim excessive WIP and the assessee had made it a colourable device to increase the WIP of the project by routing of advance without any substance - interest free advances given to the assesseeb y 2 persons - CIT(A) had deleted the additions by holding that AO had not brought any evidence to substantiate that the value of shares at ₹ 14.25 crores was ‘under value’ and also found force in the transactions between the two creditors and the assessee for allowing to allot 80,00 Sqft. ready saleable area in lieu of advance of ₹ 3 crores. Held that:- CIT(A) while deciding this ground had only taken into consideration that assessee had given right to construct an area of 80,000 Sqft, but has not considered at all the ‘investment agreement’, where the assessee had allowed to allot premises of 80,000 Sqft ready saleable area for occupation on the ‘ownership basis’. Therefore, in this manner, the Ld. CIT(A) has not considered the documents and the facts in right perspective and deleted the additions. As in the case of Kapurchand Shrimal Vrs. CIT [1981 (8) TMI 2 - SUPREME COURT] has held that the duty of the Tribunal does not end with making a declaration that the assessments are illegal and it is duty bound to issue further directions. The appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeal and to issue, if necessary, appropriate directions to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbidden from doing so by the statute and the statute does not say that such a direction cannot be issued by the appellate authority in a case of this nature. Therefore, we remit the matter back to the file of AO with a direction to carry further ‘investigation/verification’, if so required, and to remove the doubts /suspicion if any, and to pass afresh order - Appeal filed by the revenue is partly allowed for statistical purposes. Disallowance of Legal & Professional Charges - allowable business expenditure - Held that:- After verification with the actual bills received and on verification, it was noted that the purpose mentioned by the assessee tabulated earlier was not fully true. CIT(A) after verifying had also given instances which are based on factual findings and for reference, the bill of M/s Mulla & Mulla & Crigie & Caroe dated 31.12.2010 mentions that it is in respect of advising in respect of proposed agreements between Sigtia Constructions Pvt. Ltd. and Lalita Vinod Sigtia and Nikhil Sigtia and Sudhakar Shetty / Sahana Constructions Pvt. Ltd. The bill was in respect of general advising from time to time. Similarly the bill dated 31.12.2010 of Parekh & Co., Delhi was in respect of conferences of the Advocates with Advocates of Mulla and Mulla for finalizing the Share Purchase Agreement and the Investment Agreement. Similar was the purpose in the bills of ₹ 24,50,000/- of Pravin Parekh dated 7.01.2011. As specifically pointed out that the other bills was in respect of various Writ Petitions. By appreciating the factual aspects contained in the present case, we are also of the view that the sale of shares and management by the promoters of the assessee company cannot be termed as business of the company. - Decided against assessee. Addition under the head prior period expenses - Held that:- CIT(A) after appreciating the facts had correctly noticed that the expenses claimed were not raised in the return of income and moreover no details were available. No new facts have been brought on record in order to controvert or rebut the findings so recorded by Ld. CIT(A). Therefore, there are no reasons for us to interfere into or deviate from the findings so recorded by the Ld.CIT(A). - Decided against assessee.
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