TaxTMI 
TaxTMI 
2010 (1) TMI 968
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.... Income-tax (Appeals) deleted the addition made by the Assessing Officer towards administrative and other expenses attributable to one project called Nutech Indira Project, of the assessee in respect of which he had claimed deduction under section 80-IB of the Income-tax Act, 1961 (in short, "the Act"). The short facts apropos are that the assessee engaged in the business of construction of res....
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....cer was of the opinion that overall administrative expenses in earlier years were 4.5 percent to 5 percent and for the impugned assessment year such expenses came to 6 percent He, therefore, arrived at an average of 5.5 percent and proportionate administrative expenses was worked out, as relatable to the Nutech Indira Project and assessed tax. In his appeal before the learned Commissioner of In....
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....such addition. Now before us, the learned Departmental representative submitted that the assessee, by not charging correct administrative expenses for the Nutech Indira Project, was showing exaggerated profits from that project so as to avail of the excessive benefit under section 80-IB of the Act. Per contra, the learned authorised representative submitted that the appeal of the Revenue was....
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....ses for arriving at a hypothetical figure of administrative expenses for the eligible project in the relevant previous year. This approach of the Assessing Officer would lead to fallacious result, since the assessee had maintained separate books of account and its contention all along was that major part of expenses of Nutech Indira Project was incurred in the earlier years. The learned Commission....