Techna Infrastructure Pvt. Ltd. vs. ACIT, Circle-1(1), Kolkata

Parties Involved

Facts Summary

The assessee, Techna Infrastructure Pvt. Ltd., filed its return of income for the assessment year 2013-14 on 29.09.2024 declaring nil income. The case was selected for scrutiny, and statutory notices were issued. The assessee is engaged in the business of real estate development and sale of commercial properties. During the year, there was no sale of commercial property, and the expenses incurred on marketing were debited to the Profit & Loss A/c, with the loss carried forward to the subsequent year. The Assessing Officer held that since the project for which the expenses were incurred was not completed during the year and no revenue was generated, the project marketing expenses were not allowable and were added to the total income of the assessee. In appeal, the CIT(A) confirmed the order of the Assessing Officer by upholding the addition.…

Legal Issues

• 1. Confirmation of addition of Rs.36,80,375/- by the ld. CIT(A) as made by the Assessing Officer on account of project marketing expenses incurred in connection with commercial properties.

Judgment Outcome

Decided in favour of Assessee.

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