V.P.ELHENCE, RAM RATTAN
Income-tax Officer – Appellant
Versus
Delhi Promotors & Builders Pvt. Ltd – Respondent
Advocates Appeared:
B. K. Halder,M.L. Chopra
ORDER
Ram Rattan, Accountant Member - This is an appeal by the Revenue arising out of the Commissioner (Appeals), New Delhi. The assessment year involved is 1982-83. The only ground taken in this appeal by the Revenue reads as under:
"On the facts and in the circumstances of the case, the learned Commissioner (Appeals) erred in deleting the disallowance of Rs. 2,26,227 claimed as interest paid by the assessee company to the bank in respect of the loan taken against equitable mortgage of plot No. S-562. Greater Kailash-II, New Delhi.
2. During the year under consideration, the assessee has developed plot. No. S-561, Greater Kailash, New Delhi and dwelling units thereon were completed and handed over to the prospective buyers. The assessee made a further investment in property and booked space with D. S. Reliance Builders & Engineers Pvt. Limited, S-569, Greater Kailash-II, New Delhi. The advance given to this party was Rs. 13,18,000 out of loan arranged from the bank on which interest of Rs. 2,26,227 was paid and debited to the profit & loss account. The ITO has observed that in the previous year the assessee had capitalised pre project expenses. the assessee was, therefore, asked to s
Click Here to Read the rest of this document
Back
