TaxTMI 
TaxTMI 
2015 (6) TMI 1042
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....idated order. 3. We shall deal with the grounds raised in ITA No. 246/Chd/2014 wherein Revenue has raised the following grounds:- 1. On the facts and circumstances of the case the Ld. CIT(A) has erred in deleting the addition made by the Assessing Officer on account of disallowance of expense incurred by the assessee on maintenance of colonies amounting to Rs. 3,25,96,429/-. 2. It is prayed that the order of the Ld. CIT(A) be set-aside and that of Assessing Officer be restored. 3. After hearing both the parties we find that during assessment proceedings the Assessing Officer noticed that assessee has incurred various expenses for maintenance of various colonies. According to Assessing Officer such expenses could not be said to....
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....o. 4 - After hearing both the parties we find that during assessment proceedings the AO noticed that the assessee authority was in the business of acquiring land and developing it and after development the land, same was sold in auction. It was maintaining various sectors even after completion, for different time period ranging from 5-13 years depending on the same. That means that maintenance and development in respect of developed sectors and undeveloped sectors was being done by PUDA. Staff and infrastructure available with the PUDA was jointly shared by the developed and undeveloped sectors. The assessee had debited entire cost in respect of this expenditure and claimed the same as revenue expenditure. The assessee was asked to bi....
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....her observed that no project can be completed without general administration expenses and accordingly confirmed the addition. 113 Before us, the ld. counsel of the assessee reiterated the submissions made before the ld. CIT(A). He further submitted that the assessee was following cash system of accounting and the Assessing Officer has himself held that installments received in cash on account of sale of houses and flats under hire purchase agreement were taxable which means he has totally followed cash system of accounting and therefore, he cannot take a "U" turn and deny the deduction on account of administrative expenses which have been incurred in cash. Alternatively it was submitted that if these expenses are held to be on capital acc....