Dhoomketu Builders & Development (P.) Ltd. v. ACIT

368 ITR 680High Court2014#2883 most cited

What is Dhoomketu Builders & Development (P.) Ltd. v. ACIT authority for?

A real estate development business is considered 'set up' when the assessee is in a position to undertake activities for the acquisition, development, and exploitation of real estate. Expenses incurred between the setting up and commencement of such a business are allowable, even if no revenue is generated or land is classified as a non-current investment.

41

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2026.

Also referred to as

Dhoomketu Builders & Development (P.) Ltd. v. ACIT · 368 ITR 680 · setting up of business · commencement of business · real estate developer expenses · expenses before revenue generation · allowability of pre-commencement expenditure · section 3 · revenue expenditure · section 145(2)

Sections most often in play

Section 139(1)Section 139(5)Section 142(1)Section 143(2)Section 145(2)Section 263Section 3Section 32

Issues it is cited on

revenue expenditurebusinesscompanysection 14section 143section 143(3)indiapersontotal incomedocumentinterest

Judgments citing Dhoomketu Builders & Development (P.) Ltd. v. ACIT

M/S. Matrix Infrastructure, New Delhi vs. ITO, New Delhi

In the result the appeal of the assessee is partly allowed and the appeal of the revenue is dismissed

ITA 5428/DEL/2010[2007-08]Status: DisposedITAT Delhi30 Sept 2015AY 2007-08

Bench: Sh. A. T. Varkey, Jm & Sh. O.P.Kant, Am

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Sh. P. Dam Kanunjna, Sr. DR
Section 143(3)Section 40

…penses as business expenses. So, whether in the facts of the case, business was set up or not, we look into finding of the jurisdictional high court on the issue. The Hon’ble High Court of Delhi in the case of CIT Vs. Dhoomketu Builders & Development (P) Ltd. 368 ITR 680 (Del) has held as under:- “The Tribunal has observed that having regard to the business of the assessee, which is the development of real estates, the participation in the tender represents commencement of one activity which would enable the assessee to acquire the land for development. If the assessee is in a position to commence business, that…