2015 (7) TMI 898

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....one ORDER Per: Chandra Mohan Garg: The above appeal has been preferred by the revenue against the order of the CIT(A)-XXIX, New Delhi dated 30.12.2011 in Appeal No. 136/08-09 for Asstt. Year 2006-07. 2. The revenue has raised sole ground in this appeal which reads as under:- "1. On the facts and in the circumstances of the case, the Ld CIT(Appeal) has erred in deleting the addition ....

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....see was quite justified in holding that either the total expenses should have been booked as work-in-progress or the net expense of Rs. 26,87,986/- was to be disallowed and accordingly net loss was rightly disallowed during the assessment proceedings which was deleted by the CIT(A) on wrong premise. Ld. DR finally prayed that the impugned order may be set aside by restoring that of the AO. When th....

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....i Structures Ltd., it is undisputed that either these amounts had already been offered to tax by the appellant in earlier years or deduction was not claimed by it in earlier years pending settlement of bills. Further, the sub-contract expenses were directly incurred in relation to the project and there is no reason to disallow such expenses. The contention of the AO that the entire expenses should....

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....ed by the appellant on this project. This ground of appeal is allowed." 5. In view of above, we are in agreement with the conclusion of the CIT(A) that the project could not be said to have ceased to exist and the expenses claimed by the assessee was of such nature that would not result into any revenue for the assessee and therefore the same could not be booked as work in progress. Accordingly....