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2014 (9) TMI 20 - HC - Income TaxPre-operative expenses Genuineness of expenses proved - Held that:- Assessee-company was formed on 26.10.2007 and had entered into an agreement with Wellworth Homes (P) Ltd. on 05.11.07 for purchase of land measuring 7.781 acres in Village Dharuhera, Tehsil and District Riwani, Haryana - assessee became absolute and exclusive owner of the land and licenses were granted for development of the land - For purchase of the land with licenses and approvals, expenditure was incurred and the payments had been made AO was of the view that the project was at the initial stage - the project had taken off and commenced - The expenditure incurred is not in dispute and is not projected as bogus or fictitious in nature - the AO did not follow or apply AS-7 for computing the income and has not commented why AS-2 applied by the assessee was not applicable the amount had to be carried forward and taken into consideration in the next year etc. - Details for assessment of the next year are not on record though opportunity was granted to Revenue to place the details Decided against Revenue.
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