2014 (7) TMI 304

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Karunakara Rao, AM: This appeal filed by the assessee on 15.10.2012 is against the order of the CIT (A)-23, Mumbai dated 28.8.2012 for the assessment year 2009-2010. 2. In this appeal, assessee raised the following grounds which read as under: "1. The Ld CIT (A) erred in treating the interest paid of Rs. 25,06,158/- as project cost and not allowing the same from interest received of Rs. 7....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on hand. Assessee recognized income in respect of three towers such as Jogani Apartments, Kheni Tower and Jewel Apartments. Another 2 projects, in respect of which assessee made huge investments are M/s. Kamanwala Housing Construction Ltd and Kamal Real Estate housing Pvt Ltd. Assessee has not recognized any income during the year in respect of these two projects. While filing the return of income....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the income of this particular completed project." The said finding of the AO is ambiguous and it does not categorically mentioned whether the interest bearing funds were utilized. Accordingly, AO made addition of Rs. 25,06,158/- after making certain adjustments in view of the findings in para 6 of his order. An amount of Rs. 35,910/- is said to have been paid to a bank for car loan which is not c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o interest payments. The Assessing Officer has given cogent basis for his addition which has not been rebutted by the appellant. Accordingly, the addition is confirmed." 5. During the proceedings before us, Ld Counsel for the assessee fairly mentioned that the assessee is maintaining mixed accounts and the Assessing Officer did not examine the project wise analysis of the expenses and the inves....