IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI “F” BENCH: NEW DELHI
BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER &
SHRI VIMAL KUMAR, JUDICIAL MEMBER
ITA No.3882/Del/2015
[Assessment Year : 2010-11]
M/s. Banke Bihari Properties vs ITO
Pvt.Ltd., 144/2, ANS House Ward-2(3)
Ashram, Mathura Road New Delhi.
New Delhi-110014.
PAN-AACCB6652Q
APPELLANT RESPONDENT
Appellant by Shri Rohit Tiwari, Adv. &
Ms. Tanya, Adv.
Respondent by Ms. Harpreet Kaur Hansra, CIT DR
Date of Hearing 09.12.2024
Date of Pronouncement 07.03.2025
ORDER
PER PRADIP KUMAR KEDIA, AM :
The captioned appeal has been filed at the instance of the assessee
seeking to assail the First Appellate order dated 03.10.2023 passed by
Commissioner of Income Tax (A)-2, New Delhi [“CIT(A)”] under s. 250(6) of the
Income Tax Act, 1961 [“the Act”] arising from the assessment order dated
15.03.2013 passed under s. 143(3) of the Act pertaining to assessment year
2010-11.
2. As per grounds of appeal, the assessee has challenged the disallowance of
INR 51,40,000/- towards land filing expenses incurred in relation to land held
by the assessee in its stock and sold during the year.
3. Heard the rival submissions and perused the material available on record.
4. The main object of the assessee company is stated to be purchase and sale
of land and other immovable properties. During the year under consideration,
the assessee has incurred land development expenses of INR 51,40,000/- in
aggregate towards purchase of soil for land development and incurring labour
ITA No.3882/Del/2015
charges thereon. Such expenses have been claimed against the Revenue
generated from sale of land. The AO has cast out on the correctness of such
claim towards expenditure incurred and therefore disallowed entire land filing
expenses which was, in turn, endorsed by the CIT(A).
5. On perusal of the analysis carried out by the Revenue authorities, it
appears that adequate evidences are not available at the end of the assessee to
justify such expenditure to the hilt. However, it may be borne in mind that such
expenses are integrally connected to the nature of business carried out by the
assessee. The assessee has submitted bills of soil supplier. The AO has not
made any enquiry with the supplier with reference to the supply of soil. The
assessee has also placed evidence that the corresponding supplier has recorded
the transactions in its books which was consummated in determination of
resultant taxable income.
6. In our opinion, while the expenses incurred has not been adequately
proved, it cannot be said with a degree of certainty that the expenditure has not
been incurred at all, particularly when the transactions have been duly reflected
in the books of the assessee as well as that of supplier.
7. In the fitness of thing, we consider it expedient to restrict the disallowance
to 10% of the aggregate expenses incurred of INR 51,40,000/- to meet the ends
of justice.
8. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open Court on 07 th March, 2025.
Sd/- Sd/-
(VIMAL KUMAR) (PRADIP KUMAR KEDIA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
*Amit Kumar, Sr.P.S*
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ITA No.3882/Del/2015
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT, NEW DELHI
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