2010 (5) TMI 656

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....Member.- This is an assessee's appeal directed against the order of the learned Commissioner of Income-tax (Appeals)-II, New Delhi, dated September 10, 2008 for the assessment year 2005-06. The grounds raised by the assessee read as under : "(1)  That the learned Commissioner of Income-tax (Appeals) has erred in law in holding that the interest paid by the appellant amounting to Rs. 44,....

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....oted by the Assessing Officer that on inquiry, it was found that the interest was paid on funds, which were used for purchase of land, which is yet to be developed by the assessee-company. It is also noted by the Assessing Officer that legal and professional charges were also paid towards study in Gurgaon for purchase of land to be developed over a period of time. It was held by the Assessing Offi....

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....s noted by the learned Commissioner of Income-tax (Appeals) on page 3 of his order that interest on borrowed funds and legal and professional charges are incurred in relation to a project which is yet to be completed and other expenditure are being grouped under work-in-progress. In view of this observation and the finding of the learned Commissioner of Income-tax (Appeals), we are of the consider....