TMI Blog2015 (4) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 114.34 lacs was claimed by the assessee to have been utilized for business of construction. The CIT(A) has further recorded that this fund flow has substance to slow clear nexus of utilization of borrowed fund for earning income in the form of interest, rent income and business income of construction, and has paid TDS on the interest payment wherever applicable. There being no material before us to controvert these findings of the CIT(A), we hold that there is no mistake in the order of the CIT(A) in deciding the issue in favour of the assessee, and accordingly, we hold that it could not be proved by the Revenue that the assessee’s expenditure were bogus or not incurred for business construction - Decided in favour of assessee. Valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred the present tax appeal with the following proposed substantial questions of law:- (A) Whether the Appellate Tribunal has substantially erred in deleting the addition of ₹ 56,04,681/- claimed as indirect expenses including interest on Reliance Capital loan when the assessee has not shown any business income? (B) Whether the Appellate Tribunal has substantially erred in deleting the addition of ₹ 73,48,000/- on the premise that the valuation of work-in-progress was supported by the certificate of Engineer without appreciating that the assessee has arranged a false certificate from such an engineer who has stated on oath that he is unable to assess the valuation of workin- progress and when the assessee was provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred by the assessee deleting the aforesaid additions. 2.2. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A) deleting the additions made by the Assessing Officer, the Revenue has preferred the appeal before the learned Tribunal and by impugned judgment and order, the learned Tribunal has dismissed the said appeal confirming the order passed by the learned CIT(A). 3. We have heard Shri M.R. Bhatt, learned counsel appearing for the Revenue at length. We have also perused and considered, in detail, order passed by the Assessing Officer as well as the order passed by the learned CIT(A) as well as the impugned judgment and order passed by the learned Tribunal. 4. Now, so far as the question No.1 relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income and business income of construction, and has paid TDS on the interest payment wherever applicable. There being no material before us to controvert these findings of the CIT(A), we hold that there is no mistake in the order of the CIT(A) in deciding the issue in favour of the assessee, and accordingly, we hold that it could not be proved by the Revenue that the assessee s expenditure were bogus or not incurred for business construction, and accordingly, ground no.1 of the Revenue is dismissed. 4.1. We are in complete agreement with the views taken by the learned CIT(A) as well as the learned Tribunal insofar as the order passed by the learned CIT(A) deleting addition of ₹ 56,04,681/- which were made on considering the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be relied upon. The CIT(A) has further recorded that the AO s exercise of such estimation will not result into any substantial Revenue gaining exercise because the assessee after following proper method and accounting standard already reflected profit in respective year and paid taxes thereon. In reply to a specific query from the Bench, the learned counsel for the assessee submitted that project has already completed and its final profit loss has already been declared and taxed as such by the department. We find that there is no material before us to reject the valuation of work-in-progress which was also supported by certificate of structural engineer, Shri J.P. Shah. In these facts of the case, we hold that there is no mistake in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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