2012 (8) TMI 768

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.... assessment year 2007-08. Since identical issues are involved in these appeals, they were heard together and, therefore, a common order is passed for the sake of convenience. 2. The issue in all the appeals are whether the various expenditure incurred by the Assessee should be allowed as revenue expenditure or should be added to Capital Work in Progress and whether the income earned should be assessed to tax. ITA NO. 137/Hyd/11 - Lanco Mantri Technology Park Pvt. Ltd. for AY 2006-07: 3. The facts are that the assessee company is engaged in the business of developing an integrated IT Park at Manikonda, Hyderabad. The company was incorporated on 07/09/2004 as a Special Purpose Vehicle (SPV) of M/s Lanco Infratech Ltd. and M/s Mant....

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....nt of the Assessee. He had stated that the business of the assessee has commenced and this finding has not been challenged by the department. In this view of the matter we direct the assessing officer to allow expenditure which are not directly attributable to the development of project but are expenses incurred from year to year for general running of the business. Whatever expenses which are directly attributable to the progressing of the project shall be capitalised and added to the work in progress. Subject to the above directions , we set aside the order of the CIT(A) and restore the issue of allowability of the expenditure to the files of the AO for considering the issue de novo in accordance with the provisions of the Act. 6. In t....

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....ear to year for general running of the business. Whatever expenses which are directly attributable to the progressing of the project shall be capitalised and added to the work in progress. 9. For this AY also, subject to the above directions, the issue of allowability of the expenditure is set aside to the files of the AO for considering the issue de novo in accordance with the provisions of the Act. 10. In the result, the Assessee's appeal is deemed to be allowed for statistical purposes. AY 2007-08: ITA No 507/H/11- Departmental Appeal: 11. The Assessee had deposited certain sums with the banks and the interest received therefrom was reduced from the work in progress by the Assessee. The Assessing officer has treated the sa....