TMI Blog2021 (6) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... this interest expense, it was not included in the opening work-in-progress. As assessee had included the same in the closing work-in-progress in AY 2012-13. Hence this is a clear case of omission of booking an expenditure to the closing work in progress, which was rectified during the year under consideration. In any case, we find that assessee has not claimed any deduction for the same warranting any disallowance. Hence, we also find that assessee has furnished Profit Loss Account for the year ended on 31.03.2013 without interest expenses and with interest expenses to drive home the point that loss for the year remains the same in both the scenario. As safely concluded that loss for the year continues to remain the same and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved loss from business during the year. The return of income for the Assessment Year (AY) 2013-14 was filed on 30.11.2013 declaring net loss of ₹ 2,68,68,902/- which was later revised on 31.03.2015 declaring net loss of ₹ 2,72,40,409/-. 4. We find that the Assessing Officer (AO) during the scrutiny assessment proceedings observed that assessee has debited an amount of ₹ 7,61,59,332/- towards prior period interest expenses pertaining to AY 2012-13. The assessee submitted before the AO that the said interest expenses has been debited to the cost of inventory and duly included in the closing stock of inventory of ₹ 63,49,03,661/-. In effect, the assessee pleaded that it had not claimed any expenditure or deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11,95,88,418 Admin OH Balances Written back (1) Contm. To PF Other Fund 1,34,504 Depreciation 2,74,264 Directors fees Travelling 5,52,036 14,40,000 Donation 20,000 Employee-Staff Welfare 80647 Other Expense 4,09,978 4,41,373 Salary, Bonus, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Land cost 1,01,50,000 Add: Budgeted Expenses 2,02,088 3,10,67,952 Admin OH Other Expense 2,02,088 Marketing Selling OH Advertisement 58,26,096 Municipal Charges Other Dierct Exp. 2,47,536 Rehab Contrn. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year under consideration. In any case, we find that assessee has not claimed any deduction for the same warranting any disallowance. Hence, we also find that assessee has furnished Profit Loss Account for the year ended on 31.03.2013 without interest expenses and with interest expenses to drive home the point that loss for the year remains the same in both the scenario at ₹ 2,89,01,857/-. For the sake of convenience both the said Profit Loss Account are reproduced hereunder: Statement of Profit and Loss for the year ended 31st March, 2013 (without interest expense) Particulars Amount (Dr.) Particulars Amount (Cr.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to ₹ 7,61,59,332/- capitalized to cost of inventory and is not passed through Profit Loss Account. Statement of Profit and Loss for the year ended 31st March, 2013 (with interest expense) Particulars Amount (Dr.) Particulars Amount (Cr.) To Opening inventory 56,17,74,204 By Revenue from operations 5,11,62,091 To Cost of Construction 4,52,87,138 By Share of profits/ (loss) from joint ventures and partnership firms To Employee benefit Expense 54,25,544 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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