TaxTMI 
TaxTMI 
2018 (6) TMI 1189
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....n account of consultancy charges @5%. 2. The revenue has raised the following grounds of appeal for Assessment Year 2010-11:- "1. Whether on the facts and circumstances of the case & in law, the Ld. CIT (A) erred in deleting the disallowance of Rs. 4,05,02,738/- being 10% of Rs. 40,50,27,384/- (excluding depreciation) made by the AO? 2. Whether on the facts and circumstances of the case & in law, the Ld. CIT (A) was right in deleting the addition of Rs. 4,79,159/- treating the same as revenue nature? 3. That the grounds of appeal are without prejudice to each other. 4. That the order of the Ld. CIT (A) is erroneous and is not tenable on facts and in law." 3. The revenue has raised the following grounds of appeal for Assessment....
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.... of Rs. 65167869/-. The assessment was made u/s 143(3) of the Act on 31.03.2014 by the ld AO of Rs. 106893668/-. He disallowed Rs. 39988032/- on account of Rs. 70490770/- being 10% of the total expenditure of Rs. 804907708/-. The ld AO noted that similar disallowance of Rs. 4.05 crores has been made in the earlier years and therefore, from the disallowance of Rs. 8.04 crores he granted the credit for the same and made the net disallowance of Rs. 3.99 crores. 7. The assessee preferred appeal for both the years before the ld CIT(A) who deleted the addition for AY 2010-11 that the impugned addition is based upon the rejection of the book results but the ld AO has failed to reject the books of accounts. The ld AO has also not given any reason ....
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....e is engaged in providing services it recognized revenue on milestone basis. As soon as milestone is achieved the invoices have been raised, hence, it was contended by the assessee that there is not remained any work in progress at the end of the year. The ld AO asked the assessee to furnish project wise revenue and the project wise expenses which the assessee did not maintain and therefore, same was not given and on our examination of the method of accounting applied by the assessee, it appears that when the assessee has received billing as per milestone and from the milestone till the close of the year there are no expenditure identified by the ld AO then there cannot be any work in progress in the business of the assessee. The ld AO coul....
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....According to him, no new asset is created. 12. The ld DR relied upon the order of the ld AO and ld AR relied upon his submission made before the ld CIT(A). 13. We have carefully considered the rival contentions and perused the orders of the lower authorities. On examination of the information we do not find any infirmity in the order of the ld CIT(A) for the reason that the expenditure incurred by the assessee cannot be said to be an expenditure of an enduring nature. The above sum is paid by the assessee on 01.11.2009 to M/s. Sterling and Wilson Pvt. Ltd for wiring and electrical accessories to make the lease premises usable for the business of the assessee. Accordingly, ground No. 2 of the appeal of the revenue for AY 2010-11 is dismiss....