2023 (11) TMI 330

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....MA RAO , A M : This is an appeal filed by the Revenue directed against the order of ld. Commissioner of Income Tax (Appeals)-8, Pune ['the CIT(A)'] dated 13.12.2019 for the assessment year 2014-15. 2. Briefly, the facts of the case are that the assessee is a partnership firm engaged in the business of development of lands. The Return of Income for the assessment year 2014-15 was filed on 29.11.....

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....dated 30.11.2016, which is extracted by the Assessing Officer vide para no.4.1 of the assessment order, which reads as under :- "Sarsan Developers Private Limited (SDPL) and Kumar Housing Corporation Limited (KHCL) had entered into an agreement forming a Registered Firm namely Sarsan Kumar Developers (SKD) on 21.10.2006, to develop its property located at No.367+368+ 369+372+373+374, Narayan Pet....

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....he exit cost of Rs.4,99,90,000/- as per agreed terms to the outgoing partner KHCL towards settlement. The assessee firm has thus paid Rs.5,60,73,319/- as settlement cost to Kumar Housing Corporation Limited. In the event, the above cost may not be allowed as an expenditure towards the project, the same should be allowed to be amortised once the sale of the properties commence. The assesse....

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....ance of payment by holding to be capital expenditure is not justified, it should be allowed as revenue expenditure. 5. Being aggrieved by the decision of the ld. CIT(A), the Revenue is in appeal before us in the present appeal. 6. It is contended on behalf of the Revenue that the ld. CIT(A) without appreciating proper facts of the case wrongly held that the amount paid to the retiring partner is....