TMI Blog2018 (3) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... t holds that the entire amount paid by the assessee to M/s DLF Land Ltd. is entitled to deduction as expenditure. Disallowance of amounts claimed to have been paid to sundry creditors - Held that:- AO was of the opinion that since the books were rejected, the debits claimed were not justified. Both CIT(A) and ITAT noticed that there was sufficient material. Besides, they were impressed by the fact that even though the AO rejected the report, he accepted the credit and chose to completely ignore the debits. On account of this deficiency, which was clearly cured, the Court is of the opinion that no substantial question of law arises. Net expenditure credits under Section 68 addition - Held that:- Since the AO did not make any further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he concern was also entitled to full reimbursement of expenses claimed. The amount paid for the concerned Assessment Years, i.e. ₹ 25,11,78,222/- for AY 2009-10 and ₹ 7,42,47,543/- for AY 2010-11 were disallowed by the Assessing Officer (AO). It was held that the reimbursement of service charges were not properly accounted for. CIT(A) and ITAT, however, granted relief on the ground that the agreements which were produced before the lower authorities and the invoices raised were sufficient evidence to justify the claim of the assessee. 3. These are purely factual findings. Furthermore, in respect of similar or identical expenses, this Court had by judgment dated 15.07.2015 (in CIT v. DLF Commercial Project Corporation ITA 627/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Land Ltd. had deducted TDS on the payments made by it under various heads on behalf of the assessee. Further, it is also not disputed that the assessee deducted TDS on the service charge paid by it to M/s DLF Land Ltd. on the reimbursement expenses. In such circumstances, this Court holds that the entire amount paid by the assessee to M/s DLF Land Ltd. is entitled to deduction as expenditure. 20. In arriving at the aforesaid conclusion, this Court derives support from the Gujarat High Court s decision in Commissioner of Income Tax-III v. Gujarat Narmada Valley Fertilizers Co. Ltd. (in Tax Appeal No. 315 of 2013, decided on 25.06.2013), where the facts were similar to those in the present case. The Court therein rejected the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, this Court does not find any compelling ground to arrive at a different conclusion. Thus, the ITAT‟s ruling in this regard is upheld. 4. The second question is with respect to disallowance of amounts claimed to have been paid to sundry creditors to the tune of ₹ 47,73,55,572/-.This included the sum of ₹ 25,11,78,222/- which was claimed under Section 37(1) of the Income Tax Act, 1961 [hereafter the 1961 Act ]. The AO was of the opinion that since the books were rejected, the debits claimed were not justified. Both CIT(A) and ITAT noticed that there was sufficient material. Besides, they were impressed by the fact that even though the AO rejected the report, he accepted the credit and chose to completely ignor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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