DIVYANIDHI BUILDCON PRIVATE LIMITED,JAIPUR vs. DCIT CIRCLE 6, JAIPUR, JAIPUR

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ITA 616/JPR/2023Status: DisposedITAT Jaipur03 June 2024AY 2017-18Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)15 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had undertaken business activities by purchasing land, entering into a development agreement with an AOP, and initiating development work on another plot. Therefore, the financial expenses were allowable.

What were the facts?

The assessee claimed financial expenses of Rs. 30,34,582/- which were disallowed by the AO and CIT(A) on the grounds that the assessee had not commenced its own business. The assessee had earned capital gains from land contributed to an AOP and claimed expenses related to business activities.

What were the issues?

Whether financial expenses incurred by the assessee are allowable as business expenditure when the assessee has not formally commenced its own business but has undertaken preparatory and developmental activities.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 45(3),Section 36,Section 37

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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 616/JPR/2023

For Appellant: Shri V.K. Jain (C.A.) jktLo dh vksj ls@
Hearing: 13/05/2024Pronounced: 03/06/2024

Divyanidhi Buildcon Pvt. Ltd. vs.ITO Order pronounced in the open Court on 03/06/2024.

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