2023 (12) TMI 1040

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....ugh: Mr Ruchir Bhatia, Sr. Standing Counsel with Ms Deeksha Gupta, Advocate For the Respondent Through: Mr Sachit Jolly, Advocate. RAJIV SHAKDHER, J.: (ORAL) 1. This appeal concerns Assessment Year (AY) 2010-11. 2. Via the instant appeal, the appellant/revenue seeks to assail the order dated 30.01.2020 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"]. 3. According ....

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....ent concerned an integrated hotel project in Jaipur. The project involved the construction of a mall and a hotel. The hotel went by the name, Hotel Fortune Select Metropolitan. 6. The record shows that the integrated hotel project was transferred/sold to an entity named M/s. Multitude Infrastructure Pvt. Ltd. for a consideration of Rs. 95 crores. The total revenue earned from the project in the....

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....CIT(A) and the Tribunal have ruled in favour of the respondent/assessee, and consequently deleted the addition made by the AO. In reaching this conclusion, the Tribunal has taken note of the following aspects, which are not contested by the appellant/revenue: (i) The AO allowed deduction of Rs. 5,87,72,012/-, which represented expenses incurred out of the funds provided by MGF. (....

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.... had been acquired perhaps over the year. 10.1 The Tribunal thus concluded that the obligation cast on the respondent/assessee to share the revenue from the project represented commercial expediency. In a nutshell, the Tribunal applied the well-established principle that the AO could not have put itself in "the armchair of the businessman" and decide what amount would pass as a reasonable expen....