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2017 (2) TMI 231 - ITAT DELHIIncome from sale of land - treatment as business income or LTCG - claim of development expenses denied - ancestral land inherited by the assessee for the last more than 29 years and the assessee is not involved in any business activity of real estate business - Held that:- Payments for which necessarily were made to labourers and the material sourced was again local material sourced from the unorganised sector wherein necessarily the expenditure vouched would again be hand vouched. In the absence of any abnormal claim vis-à-vis the nature and extent of development done disallowance of the expenses claimed in an adhoc manner is not justified. The said claim it has been stated has been supported by the Report of an Architect/Engineer. These facts, evidences and arguments, it is seen have not been examined before arriving at a conclusion. Accordingly, the impugned order is set aside and the issue is restored to the AO directing him to examine the claim put forth on the basis of facts and evidences and not reject the claim purely on the grounds that it was hand vouched. Similarly, considering the claims not considered i.e. the land sold was ancestral land devolving upon the assessee by way of inheritance. Find no evidence in support of the same is available on record. The argument is available. Accordingly the impugned on this issue also is set aside and the issue is restored to the AO directing the assessee to demonstrate this fact before the Assessing Officer and support its claim by way of facts and evidences. The AO considering the facts is directed to decide the same by way of a speaking order, needless to say that the assessee shall be afforded a reasonable opportunity of being heard. - Decided in favour of assessee for statistical purposes.
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