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2018 (2) TMI 1706 - AT - Income TaxDisallowance of various administrative expenses on the ground that no business activity was carried on by assessee - expenses incurred in connection with the rental income - Held that:- In the absence of the information provided we are of the view that all the expenses incurred by the assessee cannot be treated as business expenses. Justice shall be served if the disallowance made by the AO is restricted to the reasonable extent. We restrict the disallowance to the extent of 10% of the expenditure as discussed above. Thus the ground of appeal of assessee is partly allowed. Addition on account of capital gains - applicability of provision of Sec. 2(47) r.w.s. Sec. 53A of Transfer of Property Act - selection of assessment year - Held that:- Any transaction entered into in any manner which has the effect of transferring or enabling the enjoyment of any immovable property amounts to transfer under section 2(47) of the Act. Accordingly capital gains would be taxable in the year in which such transactions are entered into, even if the transfer of the immovable property is not effective or complete by way of registration under the general law. Under section 2(47)(v ) any transaction involving allowing of possession to be taken over or retained in part performance of a contract of the nature referred to in section 53A of the 1882 Act would come within the ambit of section 2(47)(v). In order to attract section 53A, therefore, there should be an agreement for consideration; it should be in writing; it should be signed by the transferor, it should pertain to transfer of immovable property; the transferee should have taken possession of the property and the transferee should be ready and willing to perform his part of contract. Therefore, capital gains would be taxable in the year in which such transactions were entered into, even if the transfer of the immovable property was not effective or complete for want of registration under the general law. Therefore, the taxability of capital gains at the hands of the assessee did not fall in the assessment year 2012-2013. Thus the ground of appeal raised by the assessee is allowed.
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