TMI Blog2023 (7) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... ious agreements of urban development and many projects were in pipeline, also supports that the business of the assessee which started in the year under consideration continued in subsequent years. Since the business of the assessee had commenced during the year, therefore, the expenditures claimed by it on the revenue account are allowable. As a result, grounds raised by the assessee are allowed. - ITA No.3121/Mum./2022 - - - Dated:- 24-2-2023 - BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL For the Assessee by : Shri Kalpesh Unadkat For the Revenue by : Shri Rajeev Kumar Singh ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal. 3. The brief facts of the case are: The assessee is engaged in the business of construction and development of building units, etc. For the year under consideration, the assessee filed its return of income declaring a loss of Rs. 56.97 crore. Vide order dated 29/08/2008, passed under section 143(3) of the Act the business expenditure claimed by the assessee was disallowed on the basis that business has not commenced. In further appeal, the coordinate bench of the Tribunal vide order dated 29/02/2016, following the order passed for the assessment year 2007-08 remanded the matter to the file of the Assessing Officer. Vide order dated 29/12/2017, passed under section 143(3) r.w.s. 254 of the Act the Assessing Officer observed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me was changed to HCC Real Estate Ltd and the current name of the assessee is HREL Real Estate Ltd. The aforesaid fact is evident from the Certificate of Incorporation and the Certificate for change of name, forming part of the paper book from pages no. 1-3 The assessee is a wholly owned subsidiary of Hindustan Construction Company Ltd. On 29/09/2005, a land development agreement was entered into between the assessee and Hindustan Construction Company Ltd to develop 12.50 acres of land at Vikhroli, Mumbai. Hindustan Construction Company Ltd owns approximately 1,18,400 sq.m. of land in Vikhroli, Mumbai, out of which 28,000 sq.m. only is covered under the development right agreement. We find that Hindustan Construction Company Ltd filed an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious agreement of Urban Development and entered into an agreement with the land owner for redevelopment of a prime property in the suburbs of Mumbai to conduct table survey census of the occupants etc. at Vikhroli. For this, various analysis were conducted by ICICI property services. The assessee made an application to Municipal Corporation of Greater Mumbai on 17-6-2006. It was further submitted that out of development expenses of Rs. 76 crores, the expenses related to development of industrial park property were carried forward under work in progress in the balance sheet and which were not directly related to the said development activity were charged to profit and loss account. I further found that business was very much in existing and, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus, from the above, it is evident that in the very 1st year of its operation itself, the assessee not only entered into a land development agreement with its holding company but also received a commencement certificate in respect of the said land at Vikhroli, Mumbai from the Municipal Corporation of Greater Mumbai. From the copy of the note on administrative cost as well as the invoices raised by Hindustan Construction Company Ltd, filed by the assessee, we find that in the year under consideration, the assessee incurred project-related administrative costs on personnel. Therefore, in the present case, there exists sufficient evidence to show that the business of the assessee had commenced in the year under consideration. Further, the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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