2022 (7) TMI 1015

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....-1, Visakhapatnam in ITA No.10350/2016-17/CIT(A)-1/VSP dated 14.08.2019 for the Assessment Year (A.Y.) 2014-15 and the cross objections are filed by the assessee in support of the order of the Ld.CIT(A). 2. Brief facts of the case are that the assessee is a partnership firm engaged in the business of real estate and developed a layout as part of its business. The assessee filed its return of income for the A.Y.2014-15 on 27.10.2014 admitting total income from business at Rs.7,02,500/-. The case of the assessee was taken up for scrutiny by issue of notice u/s 143(2) on 03.09.2015. During the course of assessment proceedings, the assessee was asked to submit details of expenditure incurred in the form of layout development charges, labour ch....

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....After considering the submissions of the assessee, the Ld.CIT(A) has partly allowed the appeal of the assessee. 4. Aggrieved by the order of the Ld.CIT(A), the revenue preferred appeal before the Tribunal and raised the following grounds : 1. The order of the Ld.CIT(A)-1, Visakhapatnam is erroneous both on facts and in law. 2. The Ld.CIT(A) has erred in allowing relief to the assessee on disallowance of expenses to the extent of Rs.3,82,57,374/- when the assessee has not produced any supporting evidences for the expenditure debited in the P&L account. 3. The Ld.CIT(A) has erred in directing the AO to delete the addition of Rs.3,82,57,374 when the AO has noted that as the development of the layout was completed long back, there is n....

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....lance expenditure of Rs.3,87,57,374/- was fully disallowed. He further submitted that due to HudHud cyclone, many of the bills and vouchers got damaged and the same were placed before the Ld.CIT(A) and after examination of the same, he came to a conclusion that most of the vouchers were defaced and torn out due to HudHud cyclone. The Ld.CIT(A) also observed that no purpose would be served by sending these bills and vouchers for verification of the AO at this stage. The Ld.Counsel for the assessee further submitted that the assessee had claimed the expenditure of Rs.4,84,37,430/- during the A.Y.2012-13. But the AO considered and disallowed an amount of Rs.6,00,000/- only. In the present impugned assessment year, the AO has disallowed entire ....