DEVIPRIYA ENTERPRISES,PUNE vs. INCOME TAX OFFICER WARD 2(2), PUNE

ITA 2834/PUN/2025Status: DisposedITAT Pune14 August 2026AY 2018-195 pages
AI SummaryAllowed

What were the facts?

The assessee, a real estate developer, claimed lift expenses for its project. The Assessing Officer disallowed these expenses, treating them as prior period expenditure, which was upheld by the CIT(A).

What did the Tribunal hold?

The Tribunal held that since the assessee was following the percentage completion method and the final payment for the lifts was made in the relevant financial year, the expenses should be included as project cost and not disallowed as prior period expenses.

What were the issues?

Whether lift expenses incurred for a real estate project, when following the percentage completion method, can be disallowed as prior period expenditure.

Which sections of the Income-tax Act were involved?

Section 145(2),Section 43CB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI Dr. DIPAK P. RIPOTE & SHRI VINAY BHAMORE

For Appellant: Shri Kishor B. Phadke

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2018-19 on 16.09.2025, emanating from the Assessment Order u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act, dated 01.03.2021. Submission of Ld. AR :

2.

The Ld. AR filed paper book containing 92 pages. The relevant paragraphs of the written submissions filed by the Ld. AR are reproduced here as under :

“1. Ours is a real estate developer firm and in the year under scrutiny, the firm was progressing the construction work of its project Vasudha Etasha at Koth

The order continues below.

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