2026 (8) TMI 1046

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....ppellant-Revenue has proposed the following substantial question of law, arising out of the order dated 31st October, 2023 passed by the Income Tax Appellate Tribunal, Ahmedabad 'B' Bench (for short 'the Tribunal') in ITA No. 2798/Ahd/2014 & C.O. No. 319/Ahd/2014 for Assessment Year 2011-12: "(i) Whether on the facts and circumstances of the case, learned Tribunal has erred in law and on facts confirming the decision of Ld. CIT(A) to delete the additions made by the A.O. of Rs. 6,48,02,554/- on account expenses of projects for which no income is offered?" 3. The brief facts of the case are as under: 3.1. The assessee is a Company engaged in building infrastructure projects namely roads. The assessee-Company received grants fr....

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.... any infirmity in the order of the CIT (Appeals) brought to the attention of the Tribunal by the Departmental representative. 3.5. So far as ground No.3 of the Revenue for deletion of the addition on expenses claimed for which no income was offered amounting to Rs. 6,48,02,554/-, is concerned, the Tribunal followed the decision in case of the assessee rendered in ITA No. 136/Ahd/2014 for Assessment Year 2010-11, as the disallowance made by the Assessing Officer was identical with that of the earlier year, which reads as under: "...21. We have heard both the parties and have carefully gone through the authorities below. The issue before us relates to the allowance of claim of expenses with respect to certain projects against whic....

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....e being that no income has been booked against the same, then the logical course of action was to determine whether the assessee failed to book income against the same or has not treated a particular receipt as income The entire effort of the Revenue ought to have been to bring the concerned income to tax. In the absence of the same, the Revenue could not have been gone on to disallow the expenses incurred by the assessee, which otherwise admittedly were incurred wholly and exclusively for the purpose of business. For this reason alone, we agree with the ld. counsel for the assessee that the disallowance made by the 40 was rightly deleted by the ld. CIT (A). 24. Even otherwise on facts, we find that the Id. CIT(A) has noted, that w....