TaxTMI 
TaxTMI 
2020 (4) TMI 586
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.... following grounds of appeal: 1.1 The order passed u/s.250 on 15.03.2017 for A.Y.20008-09 by CIT(A)-7, Abad for the non-disposal of the ground relating to the booking cancellation charges of Rs. 1,36,15,155/- is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Ld.CIT(A) has grievously erred in law and on facts in not disposing off the ground of appeal relating to booking cancellation charges of Rs. 1,36,15,155/- though it was not claim in the return of income filed by the appellant. 2.1 That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have disposed off the ground of appeal relating to booking cancellation charges of Rs. 1,36,15,155/- thoug....
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....e learned CIT (A) vide letter dated 10-3-2017 submitted that it had started various residential and commercial building projects, for which it had received advance booking. But it failed to get necessary approval from the Government and thus the projects could not run. Thus the fund received by it as an advance booking were utilized by way of advancing loan to its associates at prevailing interest charges. The assessee further submitted that it has refunded the booking advances in the year 2010, out of which sum of Rs. 1,36,15,155/- was crystallized as booking cancellation charges during the year under consideration. Hence, the interest income earned from the fund received on account of bookings advance, should be set off against booking....
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....account which are placed on pages A to C, 2 & 3 and 6 of the paper book. 11. The learned AR also drew our attention on the ledger of booking cancellation charges, list of booking cancellation charges and the details of the payments which are placed on page 20 and 33 to 35 of the paper book. 12. In view of the above the learned AR before us prayed to restore the matter to the file of the AO for fresh adjudication as per the provisions of law. 13. On the contrary, the learned DR before us submitted that the assessee has not claimed any deduction on account of booking cancellation charges in the income tax return. 14. The assessee has not filed any ground of appeal for its claim qua the booking cancellation charges before the learn....
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....A) ought to have disposed of the ground. 21. We have heard the rival contentions of both the parties and perused the materials available on record. The issue in the present case relates whether deduction for the expenses not made in the income tax return can be claimed before the appellate authorities. From the preceding discussion, we note certain facts as detailed under: i. Admittedly, the expenses were not claimed in the income tax return despite the fact that the same was shown in the profit and loss account as evident from the financial statements filed by the assessee before the authorities below. ii. The list of the persons to whom the cancellation charges were paid through the banking channel which was available....
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....ular requires the officers of the income tax not to take any benefit out of the ignorance of the assessee rather the officers of income tax should guide to the assessee and also extend the benefit granted under the Act. 25. We also draw support and guidance from the judgment of Jurisdictional High Court in the case of S.R. Koshti vs. CIT reported in 276 ITR 165 wherein it was held as under: "The supreme court has observed in numerous decisions, including Ramlal V. Rewa Coalfields Ltd. AIR 1962 SC 361, State of West Bengal v. Administrator, Howrah Munisipality AIR 1972 SC 749 and Babutmal Raichand Oswal v. Laxmibai R. Tarte AIR 1975 SC 1297, that the state authorities should not raise technical pleas if the citizens have a lawful....