TMI Blog2012 (10) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... ature of the claimed liabilities as collected during the assessment proceedings and placed on records? (C) Whether the Appellate Tribunal is right in law and on facts in relying on theoretical premises, surmises, irrelevant material and conjectures regarding the so called 'contractual obligation' of the assessee? (D) Whether the Appellate Tribunal is right in law and on facts in making erroneous interpretation of relevant facts and improperly rejecting facts and evidence? 2. Though the questions are multiple, issue is single, namely, the deduction of ₹ 61,08,500/-claimed by the assessee towards expenditure being part of development charges. The assessee had paid such sum to Surat Municipal Corporation towards water c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts pertaining to the contract are credited in the P L Account for the year. There was no further income in respect of this contract subsequent to the year under appeal and it is seen that expenditure of approximately ₹ 70,000/- in the next year has not been claimed by the appellant since there was no income. The amount of water connection charges paid to the SMC as per mutual understanding between the contractor and the contractee was an ascertained liability as on 1.03.2005 which is relevant to AY 2005-06. It is not material that the contractor, i.e. the appellant was informed by the contractee regarding the liability after the expiry of the financial year since the contractor as such had no locus standi with the SMC and the SMC wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t expenses only to the extent of not exceed ₹ 100/- per sq yd. were to be borne by the contractee, namely MIL/NFL. Therefore, any amount in excess of ₹ 100/- per sq yd. is to be borne by the assessee-firm. This amount has been paid by the assessee and this expense has not been claimed by the contractee, namely MIL/NFL. To sum up, the Assessing Officer made the addition on doubt and suspicion and the learned Commissioner of Income Tax (Appeal) has given cogent reason for deleting the same. We therefore, incline to uphold the order of Learned Commissioner of Income Tax (Appeals). 5. Before us, learned 'counsel for the Revenue principally sought to place reliance on provisions contained in section 43B of the Act. We are how ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
