TaxTMI 
TaxTMI 
2022 (5) TMI 40
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....n the facts and circumstances of the case and in law, the learned CIT(A) erred in confirming AO's action of making addition of Rs.40157/- in respect of alleged untraceable credits in bank by invoking the provisions of section 68 of the Income Tax Act, 1961. 2. On the facts and circumstances of the appellant's case and in law, the Ld. CIT(A) erred in confirming the AO's action of disallowing a sum of Rs.44,651/- under section 37(1) in respect of interest paid on delayed payments of service Tax, Provident Fund and VAT. 3. on the facts and the circumstances of the appellant's case and in law, the Learned. CIT(A) erred in confirming AO's action of disallowing a sum of Rs.9,26,837/- on account of provisions for TDR.....
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....xpired on 6 December 2020, the appeal was delayed by 56 days. The assessee submits that the delay caused is for sufficient reason. It is also supported by the affidavit. In view of this delay in filing of the appeal is condoned. 06. The first ground of appeal is with respect to addition of Rs.40,157/-. The fact of the case shows that assessee has shown untraceable credit in the bank account of Rs.12,19,155/- which include at an amount of Rs.5,98,988/- which is already taxed under section 68 of the Act in Assessment Year 2016-17. Therefore, the assessee was asked to show that why balance amount of Rs.6,20,157/- should not be taxed under section 68 of the Act for this year. The assessee submitted that it represents various amount received ....
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.... be added under section 68 of the Act. However, as same amount is related to credit received in the bank account, we direct the learned Assessing Officer to verify that whether any interest component is involved in it or not. If there is any interest component, it may be taxed; the balance amount is not chargeable to tax. Accordingly, we direct the Assessing Officer to delete the addition of Rs.40,157/- and only tax interest component, if any. In the result, the ground no.1 of the appeal is allowed. 08. Ground no. 2 is with respect to disallowance of Rs.44,651/- under section 37(1) of the Act in respect of delayed payment of service tax, provident fund, and VAT. During previous year assessee paid interest on delayed payment of service ta....
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....allowed. 010. The ground no. 3 is with respect to disallowance of provision of Rs.9,26,837/- made in respect of purchase of TDRs. Fact shows that assessee has shown Rs.6,08,67,000/- as provision for purchase of Transferable Development Rights. According to the assessee, it is an accrued liability and since the assessee is following percentage completion method, out of the total of Rs.6,08,67,000/- as sum of Rs.4,08,22,351/- has already been allowed as deduction in computing profits of the business up to 31st March, 2015. Applying the same percentage completion method for this year a sum of Rs.9,26,837/- is claimed as deduction. Assessee also submitted working of the same. The learned Assessing Officer disallowed the same stating that ass....
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....tion of this area, the permissible floor space index of the land is Rs.1,63,604/- sq. mt. and therefore company is required to own FSI by purchasing transferable development rights. The assessee provided for cost of transferable development rights amounting to Rs.6, 08, 67,000/-. The detail working of this TDR is given at page no. 92 of the Paper Book. At page no. 93 of the Paper Book, assessee has estimated the cost of the TDR considering the rate of TDR at Rs.3083/- per sq. ft. up to 31st March, 2016, 90.27% of the area has been sold and assessee has already recognized TDR cost of Rs.4,08,22,351/-. For this year, assessee has claimed a provision of Rs.9,26,837/- on the basis of percentage of area sold. Therefore, it is apparent that the c....