Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
ITAT partly allowed assessee's appeal. For capital gains on sale of flats under JDA, Tribunal held that cost of acquisition must be computed with reference to saleable/built-up area, determining land cost at Rs. 95.26 per sq.ft, and rejected reduction by claimed STCG exemption. For sale of one villa, applying s.50C third proviso, it directed AO to adopt actual consideration of Rs. 2,18,29,631 instead of stamp value. Full exemption u/s 54 was allowed, deleting disallowance of Rs. 3,87,726, as 95% of construction costs were evidenced and remaining expenses were reasonably incurred. Notional rent addition on two unsold villas was deleted, property being vacant due to pandemic. Capital gain on land transferred under JDA was confirmed as short-term.
ITAT partly allowed assessee's appeal. For capital gains on sale of flats under JDA, Tribunal held that cost of acquisition must be computed with reference to saleable/built-up area, determining land cost at Rs. 95.26 per sq.ft, and rejected reduction by claimed STCG exemption. For sale of one villa, applying s.50C third proviso, it directed AO to adopt actual consideration of Rs. 2,18,29,631 instead of stamp value. Full exemption u/s 54 was allowed, deleting disallowance of Rs. 3,87,726, as 95% of construction costs were evidenced and remaining expenses were reasonably incurred. Notional rent addition on two unsold villas was deleted, property being vacant due to pandemic. Capital gain on land transferred under JDA was confirmed as short-term.
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