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2024 (3) TMI 531 - ITAT AHMEDABADLTCG OR business income - entitlement to exemption u/s 54F - gains arising on sale of land and other properties by the assessee in the relevant assessment years - AO was of the view that the assessee has carried out activities of land selling which is adventure in the nature of trade - HELD THAT:- We note that the identical issue arose in the assessment year 2012-13 [2016 (10) TMI 1319 - ITAT AHMEDABAD] as held that land/properties were held by the assessee as capital asset before its sale and consequential gains arising on sale thereto is chargeable under the head of "capital gains". Accordingly, the AO is directed to consider the gains arising on sale of land/properties under the head "capital gains". In the light of the facts noted above, the AO is further directed to de novo consider the relief as and where claimed by the assessee u/s. 54B relevant to assessment years under appeals in accordance with law after affording requisite opportunity to the assessee. Decided against revenue. Disallowance u/s 14A r.w.r. 8D - disallowance of interest and administrative expenses - HELD THAT:- Undeniably, the interest income shown by the assessee exceeds the total amount of interest expenses therefore, no disallowance of interest expense is warranted. Regarding the administrative expense we note that the assessee has not given any explanation why such expenses should not be disallowed. Admittedly, assessee earned exempted income not chargeable to tax and therefore the expenses incurred by the assessee against such exempt income cannot be allowed while calculating the income chargeable to tax. The primary onus lies with the assessee to demonstrate that no administrative expense has been incurred by the assessee. However, from the order of the authorities below, we find that such an onus has not been discharged by the assessee. Therefore, administrative expense against the exempted income needs to be worked out under the provisions of rule 8D of Income Tax Rules in the absence of any justification from the assessee. Accordingly, we confirmed the disallowance only representing the disallowance of administrative expense as made by the AO. Hence, ground of appeal of the revenue is hereby partly allowed.
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