{"id":30178,"date":"2022-10-18T05:42:08","date_gmt":"2022-10-18T00:12:08","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=30178"},"modified":"2022-10-18T05:42:08","modified_gmt":"2022-10-18T00:12:08","slug":"whether-in-case-revenue-neutral-additions-an-appeal-can-be-filed-under-income-tax-act","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/whether-in-case-revenue-neutral-additions-an-appeal-can-be-filed-under-income-tax-act\/","title":{"rendered":"Whether in case revenue Neutral additions an appeal can be filed under Income Tax Act."},"content":{"rendered":"<p>In case of assessee who is engaged in construction activity, has incurred certain expenditure which he has claimed as revenue expenditure and included in the work in progress,as there was no sale.<\/p>\n<p>During the course of assemment proceedings AO completed the assessment by considering it as capital expenditure and he reduced the amount of such expenditure from the Work in progress.<\/p>\n<p>Assessee prepfered an appeal before CIT A on following ground :<\/p>\n<p>a. It is revenue expenditure only and claimed is correct and WIP is also correct.<\/p>\n<p>b. If it is not reevune expenditure, then allow it to be appropriated proportiinately in the year when sale will disclosed.<\/p>\n<p>CIT A has appreciated the submissions of the Appellant and accepted the main\u00a0 contention of the\u00a0 assessee that it revune expenditure only an allowed an appeal by again accepting the amount of WIP disclosed by the assessee. And rejected the second ground raised by the assessee.<\/p>\n<p>Department has filed an appeal before the tribunal against the order of CIT A. Can assessee raised contention that the addition made is revune neutral and therefore not maintainable.<\/p>\n<p>Pl guide.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[123,711],"class_list":["post-30178","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-appeal","qa_tag-revenue-neutral"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/30178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=30178"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30178"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=30178"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=30178"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=30178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}