https://www.taxtmi.com/caselaws?id=313766 ITAT Visakhapatnam upheld CIT(A)'s decision dismissing revenue's appeal. Court held that cash payments for land purchase to related company were genuine as recipient admitted income in returns, satisfying section 40A(3) purpose of preventing tax evasion. Provision should be interpreted liberally when payment is genuine and payee identifiable. Additionally, court confirmed land sale gains as business income rather than capital gains, noting assessee's systematic planning including development agreement and immediate sale indicated business intention, not investment. CIT(A)'s classification as venture in nature of trade was upheld. en-us Fri, 28 Jul 2017 00:00:00 +0530 Wed, 01 May 2024 19:54:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313766 ITAT Visakhapatnam upheld CIT(A)'s decision dismissing revenue's appeal. Court held that cash payments for land purchase to related company were genuine as recipient admitted income in returns, satisfying section 40A(3) purpose of preventing tax evasion. Provision should be interpreted liberally when payment is genuine and payee identifiable. Additionally, court confirmed land sale gains as business income rather than capital gains, noting assessee's systematic planning including development agreement and immediate sale indicated business intention, not investment. CIT(A)'s classification as venture in nature of trade was upheld. Case-Laws Income Tax Fri, 28 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313766