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2023 (9) TMI 1020 - ITAT VISAKHAPATNAMExpenditure towards development activities - Treating the amount as merely diverting to development fund instead of incurring actual expenditure which is being 85% of the development charges - HELD THAT:- It is undisputed fact that the assessee is a non-profit organisation, established for the development of urban areas by implementing the provisions of the Master Plan as per the directions of the Government of Andhra Pradesh. The assessee debited 85% of the Development Charges received to the sinking fund to meet the future formation charges as per the directions given. Coordinate Bench of the Tribunal in the assessee’s own case for the A.Y. 2009-10 to 2013-14 on similar issue [2022 (10) TMI 120 - ITAT VISAKHAPATNAM] allowed the appeal of the assessee holding that since the assessee could not expend 85% of the development charges during the relevant assessment year does not warrant disallowance of the same, as the expenditure shall be incurred in future years for the purpose of general public utilities. As we hold that the CIT(A) has rightly deleted the disallowance made by the AO. We are therefore, inclined to uphold the order of the Ld.CIT(A) and dismiss the appeal of the revenue.
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