TaxTMI 
TaxTMI 
2012 (8) TMI 455
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....ddition of consultancy receipts Rs. 13,48,000/- and other income of Rs. 5,44,383/- vide order dtd. 24-12-2009 passed u/s 143(3) of the Income Tax Act. 1961 (the Act). On appeal, the ld. CIT(A), however, deleted both the additions made by the A.O. 3. Being aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us. 4. Grounds of appeal No. 1 (i & ii) read as under:- "(i) On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the disallowance of expenses of Rs. 8,87,788/-. (ii) While doing so, the ld. CIT(A) has failed to appreciate that the assessee had not furnished any evidence in support of the expenses claimed against the consultancy charges received." 5. Brief facts of the a....
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....ted before the A.O. and the ld. CIT(A), relied on the order of the ld. CIT(A). 8. We have carefully heard the submissions of the rival parties and perused the relevant material available on record. We find that the facts are not in dispute inasmuch as it is also not in dispute that the assessee is following project completion method. However, the assessee has claimed various expenses on salary, professional fees, compensation amount etc. which were incurred for the purpose of business and has claimed as business expenditure. The A.O. without pointing out any specific item of disallowable nature has made disallowance of Rs. 2 lacs on estimate basis and for the balance expenses, the A.O. enhanced the same in the work-in-progress. Since the ....
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....see has opted work completion method and the income received is in respect of maintenance charges, scrap sale etc. and accordingly he added Rs. 5,44,383/- to the income of the assessee. On appeal the ld. CIT(A) while observing that there is no element of income in the receipts shown by the assesse but it is incidental to the development activity of the uncompleted project, deleted the addition made by the A.O. 11. At the time of hearing the ld. D.R. submits that the above receipts cannot be part of the work-in-progress, therefore, the A.O. was justified in treating the same as separate receipts/income for the year under consideration and hence the addition made by the A.O. be restored. 12. On the other hand the ld. counsel for the assesse....