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2015 (10) TMI 1598 - ITAT DELHIDisallowance u/s 40A(3) - Held that:- The total cost of purchases of the land + the amount incurred for stamp duty recorded in page 5 of the assessment order, is the opening stock for the impugned AY. As the issue before us is the disallowance u/s 40A(3) of the Act and as the assessee has not claimed any expenditure during the year, the question of upholding disallowance u/s 40A(3) of the Act does not arise. - Decided in favour of assessee. Computation of loss on sale of land - Held that:- There is no doubt that the assessee paid full price i.e. ₹ 1,88,53,629/- on purchase of impugned land which has been paid to the land owners or to the consolidator. The AO is not justified in reducing the cost of acquisition and hence making an addition to the profit on sale of land. Nothing has been brought on record that the purchase and sale are not genuine. In view of these facts, the assessee is entitled to a relief of ₹ 19,32,269/-. The AO has adopted a cost of ₹ 1,69,21,360/-. The reason given by the AO for such deduction is vague and devoid of merit. - Decided against revenue.
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