{"id":58045,"date":"2026-01-08T12:57:44","date_gmt":"2026-01-08T07:27:44","guid":{"rendered":"https:\/\/itatonline.org\/digest\/pcit-v-samudra-developers-p-ltd-2023-155-taxmann-com-629-bom-hc\/"},"modified":"2026-01-08T12:57:44","modified_gmt":"2026-01-08T07:27:44","slug":"pcit-v-samudra-developers-p-ltd-2023-155-taxmann-com-629-bom-hc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/pcit-v-samudra-developers-p-ltd-2023-155-taxmann-com-629-bom-hc\/","title":{"rendered":"PCIT v. Samudra Developers (P.) Ltd [2023] 155 taxmann.com 629 (Bom.) (HC)"},"content":{"rendered":"<p><strong><br \/><\/strong>The assessee, a real estate builder following the project completion method, incurred expenses on sales support and management services for its project and sales staff. The Assessing Officer disallowed a portion of these expenses proportionate to the percentage of the project that remained incomplete, treating the balance as part of the work-in-progress. Upholding the orders of the CIT(A) and the Tribunal, the High Court held that such expenditure was for the day-to-day running of the business and purely revenue in nature. Since the expenses did not have a direct nexus with the physical progress of the project, they were allowable as deduction in full in the year they were incurred and could not be disallowed on a proportionate basis.<br \/>(AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1) : Business expenditure \u2013Method of accounting-Project completion method-Sales support and management expenses; Project completion method-Day-to-day business expenditure like staff salaries are revenue in nature; cannot be disallowed proportionately based on percentage of project completion. [S. 145]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-58045","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-f6d","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=58045"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58045\/revisions"}],"predecessor-version":[{"id":58046,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58045\/revisions\/58046"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=58045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=58045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=58045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}