2019 (8) TMI 334

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....AL JUDGMENT (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) This Tax Appeal under Section 260A of the Income Tax Act, 1961, is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad 'C' Bench, Ahmedabad, in the ITA No.2092/Ahd/2015 for the A.Y.2010-11 dated 10/12/2018 2. The Revenue has proposed the following questions o....

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....ings recorded by the Tribunal are as under : " During the course of assessment proceedings, the assessing officer has disallowed a sum of Rs. 25,69,571/- out of preliminary expenses on the ground that int eh assessment year 2008-2009 similar expenses were disallowed. We notices that assessee has claimed preliminary expenses of Rs. 23,17,067/- on the basis of earlier years expenses and ass....

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....ses IPO F.Y. 2007-2008 and 2009-10, this deduction was allowed. We have also noticed that 1/5 expenses of Rs. 52,50,805/- to the amount of Rs. 1111226/- was allowed by the CIT(A) in assessment year 2008- 2009 and 2009-10. Therefore, we justify the decision of learned CIT(A) to allow the claim of preliminary expenses to the amount of Rs. 20,11,387/- consisting of Rs. 11,11,226+9,00,161. After perus....

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....td. He observ4ed that during the assessment years 2008-09 and 2009-10 the assessing officer has given the findings that amount of advances to M/s Red Event Pvt. Ltd. was interest free advances and no purchases or services were obtained from the said party by the assessee. Accordingly the assessing officer has treated this amount advanced for non business purposes. Therefore, the assessing officer ....