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2012 (10) TMI 208 - ITAT DELHIDis-allowance of business expenses - assessee having agricultural income, and other income comprising of interest on FDR, rental income, profit on sale of mutual fund and provision written off - Revenue contended that none of the receipts bear the character of business receipts and unless, there is any business activity, business expenses cannot be allowed - Held that:- It is observed that assessee is in real estate business. Assessee has conducted preliminary activities which are necessary for business of the assessee. They include identification of suitable sites and getting them evaluated by lawyer. These activities are very much part of assessee’s business. In subsequent period assessee has also acquired two plots for development. In this regard it is incorrect to state that only business income can prove the existence of business. Aforesaid activities would include vehicle and other transportation expenses, administrative expenses, Lawyer fee, depreciation on the assets used for business. Hence, in the background of the aforesaid discussions there is considerable cogency in the proposition that assessee’s business has commenced. Accordingly, order is set aside - Decided in favour of the assessee.
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