Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 1124 - HC - Income TaxTaxability of development rights - Held that:- Tribunal was of the opinion that when development rights are transferred it has a cost and when the receipt is taxed and the corresponding cost has to be allowed as expenditure. This view is in conformity with the fundamental principle in taxation that the gross receipt cannot be brought to tax, and only the profits can be which means that the cost has to be allowed as deduction. Given this situation, the Tribunal noticed that the AO had accepted the value of the closing stock and that deduction may be allowed as expenditure but in the application of such principle had faltered. Since in the present case the figures provided by the assessee as to the nature of the expenditure i.e. proportionate value of the land at the time of acquisition, the licence fee paid etc. are verifiable and do not appear to be disputed, and in the absence of any alternative method, this Court is of the opinion that the ITAT’s approach in this case cannot be faulted. - Decided against revenue.
|