9911796707
TMI Blog2023 (3) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... rtisements, sales and marketing expenses of Rs.3,13,29,373/- and also on restricting the receipts on on-money to 35% of the total receipts by relying on the order of the Hon'ble Income Tax Settlement Commission u/s. 245D(4) of the Act. 3. The appeal is time barred by two days for which the learned Departmental Representative (ld. DR for short) had prayed for condoning the said delay by relying on the decision of the Hon'ble Apex Court in the case of suo moto Writ Petition No. 3 of 2021, where the limitation period was extended. We hereby condone the delay of two days as there was 'sufficient cause' for the delay. 4. The brief facts are that the assessee is engaged in the business of development of real estate projects and other relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money was deleted by the ld. CIT(A) by placing reliance on the order of the Hon'ble Income Tax Settlement Commission made with respect to other 16 entities of the India Bulls group. 6. Aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us. 7. The ld. DR for the Revenue contended that the A.O. had disallowed the same due to the fact that the assessee had not earned any revenue during the impugned year and that the assessee has failed to submit the details or explanation for justifying the allowability of the expenses. The ld. DR further stated that the A.O. has allowed the same to be capitalized to work in progress (WIP) account. The ld. DR relied on the assessment order. 8. The learned Authorised Representative (ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee's case for A.Y. 2016-17 which has allowed similar expenses on advertisement, sales and marketing. 10. We have heard the rival submissions and perused the material available on record. It is evident that the co-ordinate bench has allowed the expenditure claimed on advertisement, sales and marketing by the assessee for A.Y. 2016-17 which was disallowed by the A.O. and allowed by the ld. CIT(A) in appeal by the assessee. The coordinate bench has placed reliance on the decision of the ld. CIT(A) who has in turn relied on the proposition laid down by the Hon'ble Gujarat High Court in the case of Smt. Virmati Ramkrishna vs. CIT [1981] 131 ITR 659 and the Tribunal has held that the said expenses was allowable as 'business expenditure' as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Settlement Commission vide its order dated 30.04.2019 passed u/s. 245(D)(4) of the Act had confirmed 35% of the on-money as 'unaccounted income', as against 10% of gross onmoney offered by the said entities. The ld. CIT(A) restricted the addition on on-money amounting to Rs.2,92,66,175/- to 35% of the total amounting to Rs.1,02,32,661/- on the ground that the Hon'ble Settlement Commission's order pertaining to other entities were on similar facts as that of the assessee and thereby deleted the balance addition amounting to Rs.1,90,03,513/-. It is also pertinent to point out that in assessee's case for A.Y. 2016-17, on similar facts the Tribunal has held the addition on on-money to be restricted to the extent of 35% of the total on-money b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
