ITAT upheld CIT(A)'s deletion of disallowances for material and...

ITAT upheld CIT(A)'s deletion of disallowances for material and plot development expenses totaling Rs. 4,51,00,181, finding that common expenditure was legitimately borne by RNTC under development agreement, while assessee incurred specific plot development costs recoverable at Rs. 100 per sq. meter from plot owners. However, ITAT reversed CIT(A) regarding commission/brokerage expense disallowance, ruling that since land ownership vested with RNTC under development agreement, commission for individual plot sales should be borne by RNTC, not assessee. AO's action disallowing commission expense and reducing capitalized closing stock was upheld. Revenue's appeal partially allowed.