9911796707
TMI Blog2021 (9) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax-22(2), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be disallowed in this appeal is as to whether the ld CITA was justified in confirming the addition of Rs. 1,87,125/- by way of disallowance of interest on late payment of TDS in the facts and circumstances of the case. 2.1. We have heard the rival submissions and perused the materials available on record. We find that the assessee is a registered partnership firm engaged in the business of builders and contractors and had declared the income for the Asst Year 2013-14 at Rs. 1,46,38,360/-. We find that the assessee had claimed the interest paid on late payment of TDS of Rs. 1,87,125/- as deduction u/s 37(1) of the Act on the plea that the delay in remittance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le expenditure being compensatory in nature. The operative portion of the said order is not reproduced herein for the sake of brevity. 2.2. Hence in view of our aforesaid observations and respectfully following the judicial precedent relied upon hereinabove, we direct the ld AO to grant deduction for interest on delayed payment of TDS in the sum of Rs. 1,87,125/-. Accordingly, the Ground No. 1 raised by the assessee is allowed. 3. The last issue to be decided in this appeal is as to whether the ld CITA was justified in upholding the disallowance of project expenditure at 10% thereon amounting to Rs. 6,97,498/- on an adhoc basis in the facts and circumstances of the case. 3.1. We have heard the rival submissions and perused the materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had duly furnished the head wise project cost details together with the copy of relevant ledger accounts vide its letter dated 15.2.2016 which was also filed before the ld CITA. The various details filed by the assessee are tabulated hereunder:- Sr No Particulars Amount Remark 1 MCGM Charges 6165008/- Assessment fees, and other fees, water charges, charges for additional FSI Premium etc were paid to Brihan Mumbai Mahanagari Palika and evidences for expenses like receipts given by MCGM and copy of ledger account are attached to the paper book. All the payments were made through account payee cheques. 2 Electricity Charges 438590/- All the expenses were paid through account payee cheques and the copy of the ledger acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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