Plot Registration Expenses of Customer Bared by Company

Sir,

A Private Limited Company is engaged in RealEstate Business. The selling price of each plot for example Rs.10Lacs.

When collecting the amount from customer the following entry is passed in books:

Bank or Cash A/c Dr                        10,00,000/-

          To Customer A/c                                                10,00,000/-

On Registration of Plot it is Passing the following Entry:

Customer A/c Dr                               10,00,000/-

          To Income from Project A/c                             10,00,000/-

The company is registering the Plots at its full value Rs.10,00,000/- which is also the guideline value decided for that land by registration department. The registration can't be done below the guideline value.

The company is not collecting any thing from customer towards registration expenses. But, the company is paying registration expenses of Rs.90,000/- on every registration and passing accounting entry in the books as follows:

Plot Registration Expenses A/c Dr        Rs.90,000/-

                To Bank A/c (For DD)                                                 Rs.90,000/-

One can easily understand that the company is offering registration expenses free to the customer and booking it as expense in its accounts. Please note that it is collecting only guideline value of land from customer and registering the sale deed for full value i.e., 10Lacs.

In the context of the above, can anybody tell me that, whether the registration expenses are allowed to be shown as business expenditure? or they will be disallowed as expenses while computation of taxable income?

If those are disallowed, under which section? Kindly reply.. Thanks in Advance.