TMI Blog2021 (6) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... he considered view that issue needs to go back to the file of the AO to give another opportunity to the assessee to file necessary evidence in support of its expenses. Disallowance of sales tax service tax - Claim of the assessee before CIT(A) was that it has opted for composite scheme of payment of sales tax service tax and as per said scheme, taxes on sales cannot be collected from customers - HELD THAT:- The sales tax service tax is an item of expenditure, which is deductible in case same is paid by the assessee without collecting from customers - AO as well as learned CIT(A) were erred in disallowing sales tax service tax debited into profit loss account by holding that sales tax service tax is not an expense. As fact w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 1,96,374/-. 4. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the architect fees and brokerage are allowable expenditure. 5. For that the Commissioner of Income Tax (Appeals) erred in upholding the disallowance of sales tax and service tax paid of ₹ 15,37,1891- and ₹ 21,36,892/- respectively. 6. For that the Commissioner of Income Tax (Appeals) failed to appreciate the fact that the collections from the customers were inclusive of taxes and were included in gross receipts. 7. For that the Commissioner of Income Tax (Appeals) failed to appreciate the fact that the appellant had adopted compounded rate scheme in VAT. 8. For that the Commissioner of Income Tax (Appeals) fail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards land development was not claimed as deduction, but added in work-in-progress account, therefore, same cannot be disallowed. The assessee further contended that Architect fee and brokerage expenses are general in nature without specific to any project and hence, same cannot be disallowed,even though, the project was not completed in the relevant assessment year. The learned CIT(A), after considering relevant submissions of the assessee and also taken note of details of opening and closing work in progress deleted disallowance made by the Assessing Officer towards land development expenses of ₹ 13,74,384/-. However, as regards, Architect fee and brokerage, the learned CIT(A) observed that the assessee has not furnished any evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of facts with regard to non-collection of taxes from sales, the matter may be set aside to the file of the Assessing Officer to verify records. 6. The learned DR, on the other hand, supporting order of the learned CIT(A) submitted that the assessee has failed to file any evidence to prove that expenditure debited into profit loss account . Further, the assessee has not filed any evidence to prove that taxes debited into profit loss account was not collected from customers. However, to give another opportunity to the assessee, the issue may be set aside to the file of the Assessing Officer. 7. We have heard both the parties, perused material available on record and gone through orders of the authorities below. As regards disal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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