Our Client (Partner ship Firm) is engaged in real estate/construction of Apartments during the year (2008-09). It has incurred around 6 cores construction & other expenses and collected around Rs.80 lakh as advance on booking of flats by the customers. During the year no revenue is recognised as the project work is not completed and possessions is not given to the Customers.
Please clarify the following:
1) Is tax audit under 44AB applicable for the F.Y. 2008-09?
2) Others expenses includes Rs. 45 lakh incurred on Advertisements and Administration etc. Is this expenses allowed under Income tax Act ,1961 in the coming years once the project is completed and revenues are recognised on registration/ giving possession of the property to the customers or Can we file the loss return for the year 2008-09 for the other expenses?
Please lease clarify the above questions
CAclubindia
