TMI Blog2021 (1) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... was incurred by the assessee during the year relevant to the assessment year 2010-11. As noticed earlier, the assessee has claimed proportionate expenditure relating to the whole of sites affected by it. Since the assessee has claimed the expenditure during the year under consideration, it is the duty of the assessee to prove the expenditure before the A.O. by furnishing relevant documentary evidences. Since the Ld. CIT(A) has also not examined the documentary evidences, we are of the view that this issue requires fresh examination at the end of the A.O. with regard to both the issues, viz., the genuineness of the expenses and applicability of section 40A(3) of the Act. Disallowance of payment for purchase of land u/s. 40A(3) - A.O. n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issues:- a) Disallowance of development charges- ₹ 4,33,15,193/- b) Disallowance of payment for purchase of land- ₹ 1,27,50,000/- 2. The assessee is engaged in the business of film production and also in real estate activities. The above said two issues relate to real estate activities carried on by the assessee. 3. The first issue relates to the disallowance of development charges- ₹ 4,33,15,193/-. The A.O. noticed that the assessee is carrying on real estate activity under the name E.K. Land Developments . The AO noticed that the assessee has claimed deduction of ₹ 4,33,15,193/- as development expenses during the year under consideration. The A.O. further noticed that the assessee had shown develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,400/- as expenditure in assessment year 2010-11. It was submitted before the Tribunal that the land development expenses will be claimed proportionately in the subsequent years in proportion to sale of sites. The Tribunal accepted the explanations of the assessee and accordingly deleted the disallowance of ₹ 7.74 crores made in AY 2010-11. 6. The Ld. CIT(A) appreciated that the assessee's claim of ₹ 4,33,15,193/- as development expenses during the year under consideration is the proportionate expenditure claimed by the assessee in respect of sale of sites effected during the year. The Ld. CIT(A) also noticed from the ledger extract that the individual payments made towards land development expenses was less than ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has claimed the expenditure during the year under consideration, it is the duty of the assessee to prove the expenditure before the A.O. by furnishing relevant documentary evidences. Since the Ld. CIT(A) has also not examined the documentary evidences, we are of the view that this issue requires fresh examination at the end of the A.O. with regard to both the issues, viz., the genuineness of the expenses and applicability of section 40A(3) of the Act. 9. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh. 10. The next issue relates to disallowance of land purchase expenses of ₹ 1,27,50,000/- u/s. 40A(3) of the Act. The A.O. noticed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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