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2015 (4) TMI 138 - ITAT PUNEDisallowance of business loss - CIT(A) held that no business was carried out by the appellant during the year - argument of the Ld. Counsel is that the Short Term Capital Gains declared by the assessee is in respect of sale of plots of land and the assessee has only changed the head of taxability of the business activity but otherwise the assessee has done the business - Held that:- Unable to accept the plea of the Ld. Counsel. As per the provisions of Sec. 14 of the Income-tax Act the income is to be computed under the different heads after allowing the relevant expenditure. Though it is claimed by the assessee that the assessee is in the business of the land development but the assessee has shown the transactions of the land as an investment and declared the Short Term Capital Gains. So far as the claim of the business in the real estate is concerned three is not even a single transaction of sale or purchase of land or real estate and even there is no opening or closing stock-in-trade. We, therefore, concur with the finding of the Ld. CIT(A) that the assessee has not proved that the expenses debited to the profit and loss account of the M/s. V.V. Realtors are expended only and exclusively for the business of the assessee.Nothing has been placed before us to demonstrate that the assessee has carried out any regular systematic business activity. We do not find any reason to interfere with the order of the Ld. CIT(A) - Decided against assessee. Allowance part of the expenses as a deduction against income from short term capital gains - Held that:- In this case the assessee has claimed the expenditure in different head and the said act of the assessee should not deprive him for claiming the allowable expenditure in computing the income under any of other head. We, accordingly, direct the Assessing Officer on the basis of observations of the Ld. CIT(A) to allow the following expenditure after verification - (i) brokerage and commission of ₹ 2,97,200/-, (ii) corporation charges of ₹ 2,000/-, (iii) Departmental expenses of ₹ 3,550/-, (iv) land survey charges of ₹ 2,500/- and (v) legal and professional charges of ₹ 37,500/-. Needless to say the assessee should be given opportunity of being heard as per the principles of natural justice. - Decided in favour of assessee for the statistical purposes.
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