2006 (2) TMI 141

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....The present appeals are filed under section 260A of the Income-tax Act, 1961, by the Revenue against the order passed in I. T. A. Nos. 136 and 137/Mad/1999 by the Income-tax Appellate Tribunal, Madras, "B" Bench. On October 22, 2003, this court admitted the appeals and formulated the following substantial questions of law for decision in these cases: "1. Whether, on the facts and circumstances ....

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....ilities. All expenditure on capital construction was carried as capital work-in-progress under current assets. As and when the cottages were ready for occupation, the direct expenditure on construction was taken as cost to the debit of the profit and loss account, and the sale price therefor as sales, to the credit of the profit and loss account. That part of the cottages retained by the assessee ....

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....llate Tribunal. The Income-tax Appellate Tribunal dismissed the appeal and confirmed the order of the Commissioner of Income-tax (Appeals). Learned counsel for the Revenue submitted that the Tribunal was wrong in allowing the expenses claimed without taking into account the fact that the assessee had not offered any receipts towards sales for the last two assessment years. Further the assessee had....

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....d. The second stage was launching a massive publicity campaign, which the assessee had already been doing. In fact, it had already acquired land and started construction also, which were the subsequent changes. So, both the authorities below had given a finding that the assessee had commenced the business. For the purpose of development of the projects of construction, the assessee had to necessar....