Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (7) TMI 40 - AT - Income TaxLand Development Expenses - AO proceeded to disallow 20% assessee could not produce the relevant details - HELD THAT:- It is an undisputed fact that the assessee is in the real estate business and the expenses are on account of “Land Development”. It is also a fact that it is not the case of the Revenue that the expenses incurred by it under this head is bogus as is evident by the fact that AO has not disallowed the entire expenses but has only disallowed 20% of the expenses. Considering the totality of the aforesaid facts, we are of the view that the disallowance made by the AO at 20% is at a higher side. We are of the view that the interest of justice shall be met if the disallowance is restricted to 10% of the expenses. Deduction claim u/s 80G - AR’s contention that the amount of donation has been made to SPYM through banking channels and has the relevant receipts but it could not be produced for verification before lower authorities - As further his prayer that an opportunity be granted to him to produce the same before the lower authorities - HELD THAT:- Assessee’s submission that the approval of the Trust u/s 80G continues and has not been withdrawn has not been controverted by Revenue. Considering the aforesaid submission and undertaking given by the AR, we are of the view that one more opportunity be granted to the assessee to produce the relevant evidence of giving the donation. We, therefore, direct the assessee to produce the necessary evidence before the AO. The AO is directed to verify the evidence furnished by the assessee and after its verification the claim of the assessee is found to be correct, the assessee be allowed the claim of the deduction in accordance with law. Thus ground of assessee is allowed for statistical purposes.
|