TMI Blog2015 (6) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... confirm the same. - Decided in favour of assessee - ITA No. 246/Chd/2014 & ITA No. 741/Chd/2014 - - - Dated:- 5-6-2015 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER For the Appellant: Shri Jyoti Kumari For the Respondent: Shri Harish Nayyar ORDER PER T.R.SOOD, A.M. The appeal by the Revenue is directed against the separate orders dated 27.12.2013 and 18.7.2014 respectively of CIT(A), Panchkula. 2. Since the issue involved in both the appeals is identical, therefore, the appeals were heard together and are being disposed of by this common and consolidated order. 3. We shall deal with the grounds raised in ITA No. 246/Chd/2014 wherein Revenue has raised th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer. 6. On the other hand Ld. Counsel for the assessee submitted that identical issue has been decided by the Bench in the case of Punjab Urban Development Authority, Mohali v ACIT, Chandigarh in ITA No. 759/Chd/2008 for assessment year 2004-05 wherein it was held that expenses incurred on maintenance of colonies is of Revenue nature. 7. We have considered the rival submissions carefully and find that identical issue came up before the consideration of the Tribunal in the case of Punjab Urban Development Authority, Mohali v ACIT, Chandigarh in ITA No. 759/Chd/2008 This issue was decided vide paras 110 to 115, which reads as under:- 110 Ground no. 4 After hearing both the parties we find that during assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 111 On appeal before the ld. CIT(A) it was mainly submitted that addition made by the Assessing Officer was not in accordance with AS7 as well as general accounting principles. It was submitted that administrative expenses which could not be identified were required to be shown in the profit and loss account and should not be made as part of the contract. 112 The ld. CIT(A) after considering the submissions observed that as per the decision of Hon'ble Supreme Court in case of Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT, 227 ITR 172 (S.C) Accounting Standard were made for general guidelines and accounting purposes and the same can not be used for determining tax liability. He further observed that no project can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem of accounting is followed then all receipts which relate to the revenue filed, have to be taxed. Similarly all cash outgoings which are in the revenue field, had to be allowed as expenditure. Since the assessee is in the business of purchase and developing the land and selling the same after the development of the same and therefore, administrative expenses incurred is clearly in the field of revenue. Further the assessee was following cash system of accounting, therefore, once cash has been spent or outgone from the assessee same has to be treated as expenditure. Therefore, we set aside the order of the Ld. CIT(A) and delete the addition. 8. Though in that case the issue was mainly decided on the basis that assessee has followe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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