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2022 (9) TMI 100 - ITAT CHENNAIGain on sale of Project - LTCG or business income - bifurcating the sale proceeds - sale of land treated as business profits by the assessee - bifurcating the sale proceeds of Project RMT-I (Profits on sale of land offered under LTCG and the profits on sale of flats offered as business profits) - HELD THAT:- As has been done in the assessment year 2008-09 [2019 (1) TMI 1987 - ITAT CHENNAI] the Assessing Officer continued to assess the income derived from the land of project RMT-II as business income in the assessment years 2009-10 to 2011-12 including the assessment year 2012-13 under consideration. As the Coordinate Benches of the Tribunal has remitted the matter back to the file of the Assessing Officer, we also remit the matter back to the file of the Assessing Officer for fresh consideration for the assessment year 2012-13. Thus, the ground raised by the Revenue is allowed for statistical purposes. Addition towards reworking of cost of construction - difference of cost of construction adopted by the assessee and the cost of construction calculated by the Assessing Officer - HELD THAT:- CIT(A) has observed that the calculation carried out by the Assessing officer in the impugned assessment order, the expenditure incurred towards construction of flats has been rightly considered on proportionate basis whereas, the assessee has considered the entire amount which are not in accordance with the facts of the case. Hence, the Ld. CIT(A) has held that the discrepancy arrived at by the assessee is not correct and accordingly, the discrepancy worked out by the Assessing Officer was confirmed. In view of the above facts, we find no infirmity in the order passed by the Ld. CIT(A) on this issue and accordingly, the ground raised by the assessee is dismissed. Disallowance u/s 14A r.w. Rule 8D - income from dividend is exempted from tax and assessee had claimed certain business expenses, however, the assessee has not admitted any expenses attributable to the earning of exempt income, accordingly, by applying the provisions of Rule 8D, the Assessing Officer determined the expenses attributable to earning of exempt income - HELD THAT:- CIT(A) has observed that the provisions of section 14A contemplate those expenses which the assessee may have incurred towards the investment attributable to exempt income - as observed that the expenses of personal in nature do not fall within the ambit of section 14A - CIT(A) rightly confirmed the disallowance made u/s 14A - no infirmity in the order passed by the Ld. CIT(A) on this issue. Accordingly, the ground raised by the assessee is dismissed.
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