In a recent order granting relief to the leading industry body, the Confederation of Real Estate Developers Association of India (CREDAI), the Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has directed the Commissioner of Income Tax (Appeals) to reconsider its order refusing the claim of set-off against the income earned from the real estate exhibition.
The assessee, an association of persons filed its income tax return. During the assessment proceedings, the assessing officer noted that the assessee has conducted exhibitions of “real estate projects” in Bangalore and Dubai and earned an income of Rs.1,29,74,413/- which is declared in the return. The AO noticed that the assessee has claimed expenses not relating to exhibitions also, against the above said net income received on conducting exhibitions. Based on this, the AO held that the other expenditure is not entitled to adjust against exhibition income.
Before the Tribunal, the assessee contended that the order passed by the Ld. CIT(A) is not clear in as much as the authority has given a general direction without having regard to the factual aspects of ‘receipts and expenditure’ relating to exhibitions presented before him.
“We have heard the Ld.DR on this issue. Having regard to the submissions made by Ld. AR, we are of the view that this issue is also required to be restored to the file of the Ld. CIT(A) for adjudicating it afresh after affording a quate opportunity of being heard to the assessee. We, therefore, set aside the order passed by the Ld. CIT(A) on this issue and restore the same to the file of Ld. CIT(A) for adjudicating it afresh,” the Tribunal said.
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