Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (7) TMI 127 - HC - Income TaxPayment according to contractual terms – deduction of expenses - In view of the settlement, GEB disbursed service charges of Rs. 2,12,01,307/- to appellant. Out of this amount, appellant booked Rs. 1,48,40,915/- as expenses on account of monies payable to Mahan as per Clause 5 of the joint venture agreement. - The Assessing Officer disallowed Rs. 83,30,111/- out of Rs. 1,48,40,915/- as according to him, by virtue of Clause 6 of the joint venture agreement only surplus, if any, which remained after meeting cost/expenses is to be paid to Mahan, subject to 2.8% of claim amount settled. – Held that: - ITAT by remanding the matter to the Assessing Officer for deciding the said case de novo has, in the process, even set aside the expenditure allowed by the Assessing Officer and CIT(A). We are of the view that ITAT has no power of enhancement of disallowance of expenditure made by the Assessing Officer and CIT(A) especially when no appeal had been filed by the Revenue.
|