2021 (4) TMI 807

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n 29.9.2009 for the A.Y 2009-10 declaring a total loss of Rs.(-)14,70,29,974/-. Thereafter, a revised return of income was filed on 13.2.2011 admitting the loss of Rs. 14,90,56,533/-. The return was initially processed u/s 143(1) and subsequently was taken up for scrutiny u/s 143(3) of the Act. During the course of assessment proceedings, the Assessing Officer observed that the assessee company admitted gross receipts of Rs. 38.67 crores and claimed credit for TDS of Rs. 3,83,13,255/-. The Assessing Officer also observed from Form No.26AS that as per the TDS certificates, the gross receipts worked out at Rs. 46.51 crores and therefore, there was a difference of Rs. 7.84 crores in the turnover. When asked to explain the difference, the asses....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Income-tax (Appeals) erred in affirming the addition made by the learned Assessing Officer (AO) on account of difference between gross receipts as per Form 26AS vis-a-vis turnover as per profit and loss account. b) The learned CIT(A) failed to appreciate that the difference represents the reimbursement of expenditure recovered on cost to cost basis by the Appellant, and hence shall not form part of the turnover. c) The learned CIT(A) erred in not appreciating that recovery of expenditure on a cost to cost basis cannot partake the nature of income to be charged to tax. Notwithstanding and without prejudice to the above, the learned CIT(A) ought to have appreciated that the Appellant filed revised return of income considering the re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ded under section 36(1)(iii) of the Act. d) The learned CIT(A) ought to have appreciated that the construction of towers was for the purpose of facilitating the ongoing business of the Appellant and there was no extension of existing business. e) The learned CIT(A) erred in not placing reliance on the judicial precedents quoted by the Appellant wherein the courts had held that interest paid on capital borrowed for acquiring business asset is an admissible expenditure under section 36(1)(iii) of the Act. f) Notwithstanding the above, the learned CIT(A) ought to have appreciated that the acquisition of the assets were in the nature of replacement or upgradation of assets already held by the Appellant. The Appellant craves leave to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ses. ITA No.1098/Hyd/2018 A.Y 2011-12 9. Brief facts of the case for this A.Y are that the assessee company filed its return of income declaring total income at Rs. 35,11,950/- under the normal provisions of the I.T. Act and book profit of Rs. 2,91,64,033/-. Thereafter, it filed its revised return of income on 29.03.2013 declaring total income at loss of (-)Rs. 139,15,27,900/- and book profit declared at (-) Rs. 81,58,03,104/-. During the assessment proceedings u/s 143(3) of the Act, the Assessing Officer observed that the assessee has debited an amount of Rs. 1,01,34,066/- towards 'advance and debit balance written off' to its P&L A/c. Since the assessee could not furnish relevant documents and other details explaining the nature of exp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ment of section 36(1)(vii) for claiming deduction thereunder. d) The learned CIT(A) ought to have placed reliance on Circular N0.12/2016 issued by the Central Board of Direct Taxes providing that claim for any debt or part thereof in any previous year shall be admissible under section 36(1)(vii) of the Act, if it is written off as irrecoverable in the books of accounts of the assessee for that previous year and on that basis should have allowed the claim of deduction of the Appellant in its entirety. The Appellant craves leave to add, alter and modify the above grounds during the course of the appeal. For the above and any other grounds which may be raised at the time of hearing, it is prayed that the order of the learned AO be set as....