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2024 (3) TMI 661 - ITAT DELHIDisallowing claim of expenditure - non-carrying of business activity during the year under reference - only reason for not allowing the expenditure/loss claimed by the assessee is that the assessee did not generate any revenue during the assessment year under consideration and, therefore, the assessee did not carry out any business operations - whether the assessee commenced its business operations during the year under consideration and as to whether the expenditure claimed by the assessee is an allowable expenditure or not? - HELD THAT:- It is not in dispute that the assessee is into real estate business. It is also not in dispute that the assessee has purchased land for its real estate purchases and has shown in the balance sheet as inventories/stock-in-trade. Therefore, in our view once the assessee has purchased the land for its business purposes and shown it as inventory and as stock-in-trade in the balance sheet it cannot be said that the assessee did not commence its business operations during the year under consideration. The Jurisdictional High Court in the case of CIT Vs. Dhoomketu Builders & Development P. Ltd. [2013 (4) TMI 668 - DELHI HIGH COURT] on identical facts held that the commencement of real estate business would normally start with the acquisition of land or immovable property. It has been held that once the land is acquired by the assessee it can be said that assessee has actually commenced its business which is development of real estate. We hold that the assessee had commenced its business operations during the assessment year under consideration and the expenditure incurred by the assessee is an allowable expenditure. Non generation of any revenue during the assessment year under consideration cannot be the reason for holding that the assessee has not commenced any business operation. Ground no.1 of grounds of appeal of the assessee is allowed.
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