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2017 (5) TMI 1706 - ITAT BANGALOREShort term capital gain - Whether transaction did not belong to the appellant individually and the transactions were required to be considered in the hands of AOP in which the appellant was a member with 1/7th share? - HELD THAT:- Short term capital gain, but while doing so, he has not taken into account the expenditure incurred in levelling the plot. Undisputedly the assessee has carved out 90 plots out of the total lands purchased and for its carving out, some expenditure is bound to be incurred. AO did not taken into account the expenditure incurred in this regard and he has computed the short term capital gain without taking into account the expenditure incurred after the purchase of plot. This approach of AO is incorrect as for developing a plot, some expenditure is bound to be incurred. Therefore, this issue requires readjudication by the AO and accordingly set aside the order of CIT(Appeals) and restore the matter to the file of AO with a direction to reexamine the claim of expenditure incurred in levelling of the plot or otherwise relevant for the purpose of computation of short term capital gain. - Appeals of the assesses are allowed for statistical purposes.
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