TMI Blog2018 (11) TMI 1618X X X X Extracts X X X X X X X X Extracts X X X X ..... is score is upheld. Disallowance on account of gifts given during the festive season, it is matter of record that in the earlier years exactly similar issues were involved wherein on the stage of first appellate authority the matter has been decided in favour of the assessee. Since no new facts have been brought on record, therefore, we do not find any reasons to interfere in the finding of the CIT (A) and accordingly the same is affirmed. Appeal of the revenue is dismissed. - ITA No.1734/Del/2015 Asstt. Year: 2011-12 CO No. 300/DEL-2015 (In ITA No. 1734/Del/2015) Asstt. Year 2011-12 - - - Dated:- 12-11-2018 - Shri Amit Shukla And Shri Prashant Maharishi, JJ. Department by: Shri Sanjit Singh, CIT(DR) Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown as advance from customers under the head current liabilities . The Ld. AO held that, since assessee has not shown income from projects undertaken at Mohali, therefore, the expenditure incurred should have been capitalised towards work in progress. As per the project completion method, the assessee has only completed project less than 30%, therefore, expenditure to the extent of ₹ 1,72,25,470/- should have been taken to work-in-progress instead of claiming as indirect expenses in the profit and loss account. Accordingly, disallowance of ₹ 1,72,25,470/- was made by the AO. 3. Apart from above, Ld. AO noted that Assessee Company has debited expenditure of four gold coins which was given on festivals for distributio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note of ICAI on accounting for real estate transactions as revised in the year 2012, selling overheads and indirect cost incurred for the project are booked directly to the profit and loss account as the expense and is not part of construction cost or development cost. Thus, keeping in this guidance note issued by the ICAI, Ld. CIT (A) held that AO is not correct in taking all the selling and market expenses to the work-in-progress. After detailed discussion, he held that AO s action in capitalising these expenses is not based on any sound footing and thus disallowance made by the AO was deleted. 5. None appeared on behalf of the assessee; hence, appeal is being decided on the basis of material available on record and arguments pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted by the AO. Ld. CIT (A) after taking note of such guidance note of ICAI and also the accounting standard has given a categorical finding that selling and marketing expenses being indirect expenditure cannot be taken to the work in progress and therefore such a disallowance made by the AO treating it to part of work-in-progress has rightly been deleted by him. Accordingly, order of Ld. CIT (A) on this score is upheld. 7. In so far a disallowance of ₹ 1,74,168/- on account of gifts given during the festive season, it is matter of record that in the earlier years exactly similar issues were involved wherein on the stage of first appellate authority the matter has been decided in favour of the assessee. Since no new facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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