https://www.taxtmi.com/caselaws?id=450880 The ITAT Delhi allowed the assessee's appeal regarding disallowed expenditure claims. The revenue authorities had rejected the expenditure on grounds that the assessee generated no revenue and did not carry out business operations during the assessment year. The ITAT held that a real estate business commences with land acquisition, not revenue generation. Since the assessee purchased land for business purposes and recorded it as inventory/stock-in-trade in the balance sheet, business operations had commenced. Following Delhi HC precedent in CIT v. Dhoomketu Builders Development P. Ltd., the tribunal ruled the expenditure was allowable despite absence of revenue during the year. en-us Wed, 13 Mar 2024 00:00:00 +0530 Thu, 14 Mar 2024 14:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450880 The ITAT Delhi allowed the assessee's appeal regarding disallowed expenditure claims. The revenue authorities had rejected the expenditure on grounds that the assessee generated no revenue and did not carry out business operations during the assessment year. The ITAT held that a real estate business commences with land acquisition, not revenue generation. Since the assessee purchased land for business purposes and recorded it as inventory/stock-in-trade in the balance sheet, business operations had commenced. Following Delhi HC precedent in CIT v. Dhoomketu Builders Development P. Ltd., the tribunal ruled the expenditure was allowable despite absence of revenue during the year. Case-Laws Income Tax Wed, 13 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450880