Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

2017 (9) TMI 1397

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the facts were available on record,that it dealt with the details of expenses,that the assessee had deducted tax at source in respect of certain expenses. With regard to the additional evidences,he stated that the issue in dispute was allowability of credit of income declared during the course of survey carried out during the AY.2006-07 towards sale of unutilised FSI and TDR in AY.2009-10,that it had suo-motu claimed disallow -ance of Rs. 52.95 lakhs u/s.40(a)(ia) of the Act on account of non- payment of TDS, that tax was deducted and paid in AY.2009-10,that the assessee wants to submit ledger account of expenses and the challans evidencing payment of TDS,that the additional evidences were not produced before the AO during the assessment proceeding for the AY. 2009-10. He relied upon the case of Prabhavati S. Shah (231ITR1). The Departmental Representative(DR) opposed the additional ground as well as additional evidences. 2.1. We have gone through the applications made by assessee for admitting additional evidence. We find evidences would help the Tribunal to adjudicate the issue. Though the details were made available to the AO in the earlier year, but were not produced for the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a). Finally,the provisions for outstanding expenses(Rs.94,69,354+ Rs. 1,89,71,445) were disallowed and added to the income of the assessee. 4. Aggrieved by the order of the AO,the assessee preferred an appeal before the First Appellate Authority(FAA). Before him,it was stated that amount of Rs. 1.47 crores,in addition to Rs. 52.95 lakhs disallowed u/s. 40(a)(ia),was offered as income to cover any omission/ error or any addition to be made during the assessment proceedings,that the amount had not been adjusted against the additions made in the assessment,that the assessee had suffered a loss of Rs. 16.12 lakhs in the project,that the AO had disallowed the entire outstanding expenses while at the same time had taxed the income receivable reflected in the balance sheet. After considering the assessment order and submission of the assessee,the FAA held that on the date of survey the assessee had already filed the return of income for AY.2006-07 in which expenses on the project (approx. Rs. 94 lakhs)had been included in the WIP, that the project was completed only in the AY.2008-09,when the entire income and the expenditure was booked. He further observed that the assessee had agreed w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ive expenses included interest paid and compensation to current associates,that in the AY.2007-08 construction expenses included Rs. 1.29 crores to SC, that the assessee had claimed that it had entered into an agreement with SC,that as per the agreement he was entitled to get space in flats of approx. 43,430 sq. ft @650 per sq. ft., that the flats would be sold by the assessee,that the difference between the sale price and agreed price had to be the share of the assessee,that the amount of sale consideration was credited to P&L A/c. of the assessee,that payment to assessee was debited in AY.2007-08,that in the earlier years same was shown as advance in the account of SC,that the account was squared off in AY.2007- 08. As per the FAA the assessee had submitted the statements of accounts and copies of returns of SC for AY.s 2004-05 and 2005-06 wherein his share in the flats sold was declared. It also furnished details of flats sold on behalf of SC, name of purchasers areas of flats and profit shares with SC. He found that Rs. 1.09 crores was the net amount that was paid to assessee. He further observed that entire sale proceeds were deposited in a bank account under the control of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nly,that he was not to be given difference in sale value as claimed by the assessee, that assessee had constructed 138 flats, that 43 flats were sold to SC,that 30 flats were purchased by one other person and remaining other 65 flats were sold by the assessee,that FAA had not given any clear finding that for what purposes the expenses were incurred,that he had not explained that as on 31/3/2006 which portion of the project was incomplete,that the assessee had made disclosure of Rs. 2 crores, that the FAA had admitted that additional evidence without affording an opportunity to the assessee to examine them. The Authorised Representative(AR) argued that the assessee had incurred the expenses in the subsequent years,that the FAA had given finding of facts that expenses were related with completion of the project, that he had not allowed the administrative expenses. He relied upon the case of Triveni Engineering Industries Ltd. (336ITR374), of the Hon'ble Delhi High Court. 6. We have heard the rival submissions and perused the material before us. We find that an action u/s. 133A was carried out at the business premises of the assessee at Mumbai and Pune,that it had completed a re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t been dealt with or have not been adjudicated properly. Therefore,we are of the opinion that matter needs further investigation and verifi cation. Before us,representatives of both the sides also agreed that matter could be sent back to the AO. So,in the interest of justice,we are remitting back the issue to the file of the AO for fresh adjudication. He is directed to consider the additional evidence filed before us before deciding the taxability of the assessee. He would afford a reasonable opportunity of hearing to the assesse. Gr.s No.1,2 and 5 raised by the AO are decided in his favour,in part. Additional ground of appeal,filed by the assessee,also stands partly allowed. The AO,as directed earlier,would hear the matter afresh. ITA/5309/Mum/2010 -AY.,2006-07: 7. The effective Ground of appeal raised by the assessee for the year under appeal is about declaration of Rs. 2 crores as income. 8. Before us,the AR argued that the FAA should not have taken the disclosure at Rs. 2 crores, that the disclosure was about sale of TDR, that same was to accrue in future. He referred to pg-9 & 11 of the PB. The DR supported the order of the FAA. 9. We have heard the rival submissions and p....