2014 (2) TMI 984

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ned CIT(A)'s decision of restricting the disallowance of expenditure to a lower percentage is right erred in accepting claim of the assessee for disallowance of expenditure and restricting the disallowance to lower percentage. 2) Whether the decision of learned. CIT(A) remitting back the issue to the Assessing Officer with certain directions is right as per the law. 3) ....." 3. Brief facts of the case leading to the filing of the present appeal are that the assessee is engaged in real estate business. It is the part disallowance of the expenses claimed by the assessee, on site development and construction, and the decision of the CIT(A) in relation thereto, in the impugned order dated 10.7.2013, which has given rise to the present....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1/Hyd/2012, insofar as assessment year 2007-08 is concerned, vide para 9, set aside the order of the CIT(A), and restored the matter to the file of the CIT(A), with a direction to re-dispose of the appeal of the assessee on merits, after considering the request of the assessee for condonation of delay in filing the appeal, in accordance with facts and law. 6. In pursuance of the said decision of the Tribunal insofar as it related to assessment year 2007-08, the CIT(A) in the second round of appellate proceedings before him, by the impugned order dated 10.7.2013, in the first place, condoned the delay in the filing of the appeal by the assessee, and then proceeded to decide the appeal on merits, following the very same order of the Tribun....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing Officer has listed out various expenditures for disallowance, he has not examined whether the entire expenditure was paid in cash or by cheque. We also notice that the disallowance is not invoking the provisions of S.40A(3) but disallowance is under S.37(1), being unverifiable nature of expenditure. As submitted by the learned counsel for the assessee, there are cheque payments also involved in the expenditure considered by the assessing officer, which could have been subjected to verification. Since these details are not furnished before the authorities earlier, we direct the assessing officer to examine these aspects and exclude the cheque payments out of the disallowance. With reference to the quantum of disallowance, considering the....