2017 (2) TMI 637

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....und No. 2 relates to disallowance made u/s. 35D of the Act and ground No. 3 relates to double disallowance of Rs. 3.28 crores. 4. The assessee is engaged in the business of Third party logistics operations for containerized/break-bulk impex/domestic cargo with the impetus on creating Pan India Network of Multimodal Logistics Park/Free Trade Warehousing Zone/Inland Clearance Depot/Container Freight Stations/Warehousing. The Assessing Officer noticed that the assessee has incurred share issue expenses aggregating to Rs. 4.76 crores. After disallowing the preliminary expenses of Rs. 34,100/-, assessee claimed 1/5th of share issue expenses amounting to Rs. 95,45,587/- u/s. 35D of the Act. The Assessing Officer, by placing reliance on the decis....

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....arance Depot (ICD) at Jhansi in UP and Warehousing Complex at Village Govirle at Navi Mumbai. The company through its subsidiary Fastlane Distripark & Logistics Private Ltd. is setting up a Container Freight Station (CFS), near JNPT at Dighode Village, Panvel Taluka, Raigad District, Maharashtra and through its subsidiary Chiplun FTWZ Private Ltd., has initiated plans to set up FTWZ as a Co Developer at Change Village, in Raigad District. The company is also in process of acquisition of land at various places including Umbergaon and Pipavav in Gujarat, Chennai and National capital region to set up CRS/ICD/Multimodal project is classified. The assessee capitalized expenditure incurred in construction of this project under the head "Pre-opera....

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....sessing Officer took the view that increase in work-in-progress by Rs. 3,18,17,073/- would also increase the current year's business profit by Rs. 3,28,17,073/-. Accordingly, he assessed the above said sum of Rs. 3,28,17,073/- as business income of the assessee towards under valuation of work-in-progress. The learned CIT(A) also confirmed the same. The contention of the assessee is that the tax authorities have made double addition of same item. 8. We have heard the parties on this issue. We have also noticed that the assessee has reduced capital work-in-progress by interest income of Rs. 3.28 crores and accordingly disclosed net amount as capital work-in-progress in the books of account. It is pertinent to note that the "Capital work in p....