bgp IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1977 OF 2009 The Commissioner of Income Tax ..Appellant Vs. M/s.Juhu Construction Company ..Respondent Mr.B.M.Chatterjee i/b. Mrs.Padma Divakar for appellant. Mr.S.C.Tiwari for respondent. CORAM :- V.C.DAGA & J.P.DEVADHAR,JJ. DATE : 28TH AUGUST, 2009 P.C. 1. Heard learned Counsel for the parties. Following two questions are sought to be raised styling as substantial questions of law: a. Whether in the facts and circumstances of the case and in law, the assessee can be allowed to include a loss making project purchased from the sister concern and bring down the income from 20% which was being offered in the earlier years to 5% during the assessment year under consideration ? b. Whether in the facts and circumstances of the case expenses incurred in constructing club house is allowable expenses in the project when the said amenity is not part of the agreement of sale ? 2. So far as first question is concerned, law permits that the loss making project can always be purchased and if that results in reducing the income, then the said factor has to be taken into account while assessing the tax. We do not find any fault with the view taken by the Tribunal in this behalf. 3. So far as second question is concerned, it relates to the allowable expenses incurred in construction of club house as per plan sanctioned by the Municipal Corporation. If it was a part of construction activity, then expenses needs to be allowed. The view taken is a reasonable and possible view. In this view of the matter, appeal stands dismissed for want of substantial question of law with no order as to costs. (J.P.DEVADHAR,J.) (V.C.DAGA,J.)