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2021 (7) TMI 284 - AT - Income TaxRevision u/s 263 - SPV contribution by monitoring committee out of the sale proceeds - AO has not done any enquiry in respect of the assessment of 20% of sale proceeds retained by monitoring committee and that assessment order was passed without making proper enquiries and based on incorrect assumption of facts or on incorrect application of law or non application of mind or based on no or insufficient materials - HELD THAT:- As assessee has considered the 20%/10% as the case may be in assessment year 2014-15 which is not in accordance with the matching principle is to be followed in Mercantile system of accounting. Admittedly, assessee follows mercantile system of accounting and therefore the entire sale proceeds needs to be accounted for the year under consideration out of which the expenditure has to be claimed in respect of the amount retained by monitoring committee. We place reliance on decision by coordinate bench of this Tribunal in case of Veerbhadrappa Sangappa [2020 (12) TMI 1145 - ITAT BANGALORE]. This Tribunal in respect of this issue has observed as under - AR has mentioned that Hon’ble Supreme Court has subsequently reduced the SPV contribution to 10% as assessee holds ‘A’ Category mining lease by virtue of order dated 28/03/2011. Any reimbursements made to assessee in view of the same shall be considered in the relevant year in which such payment have been received in accordance with law. Assessee is directed to place on record relevant details and payment schedules issued by the monitoring committee in support. 20% contribution of sale proceeds retained by monitoring committee towards SPV charges claimed as expenditure - As the facts for these issues are identical with that considered by us for assessment year 2012-13, the observation hereinabove are applied mutatis mutandis. We thus hold that the 20%/10% contribution to SPV as the case may be, out of the sale proceeds is an allowable expenditure for year under consideration.
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