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2023 (6) TMI 280 - AT - Income TaxAllowability of expenses of selling expenses as revenue expenditure - contention of the assessee that such expenditure is not connected with the construction, hence allowable as revenue expenditure in terms of AS-7 - HELD THAT:- As relying on PUMA REALTORS PVT. LTD. [2018 (11) TMI 1618 - ITAT DELHI] and Pragnya Crest Properties (P) Ltd [2020 (4) TMI 224 - ITAT BANGALORE] as held the action of the Revenue Authorities in rejecting the assessee's accounting method, without assigning any reason is not justified. The accounting method followed by the assessee and thereby excluding the indirect expenses such as office employees’ salary, administrative expenses and marketing & selling expenses is as per the recognized principles of accountings and as such the claim of the assessee deserves to be allowed. We hold accordingly. The additions made by the lower authorities on this issue are hereby ordered to be deleted. Thus we hereby direct the AO to delete the impugned additions. Decided in favour of assessee.
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