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2012 (10) TMI 1094 - AT - Income TaxSale of Land - whether agricultural land or not - disallowance of pre-operative expenses - salary to staff, rent etc - Held that:- Assessee is engaged in the business of establishing holiday homes and resorts - Land purchased as a part of commercial business - no evidence on record to show that the assessee carried any agricultural activities - Cultivation of casuarina trees was only incidental - Land was not useful for carrying on any normal agricultural activities - Short-term capital gains tax has been levied - Decided against the assessee Preoperative expenses - Held that:- Even though preoperative expenses cannot be technically considered as expenses incurred in connection with the transfer of the property - those expenses are in the nature of expenses incurred in developing and maintaining the property - thus increases the cost of land - decided in favor of assessee
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