TaxTMI 
TaxTMI 
2024 (3) TMI 531
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.... that the assessee in the present case is an individual and has declared income under the head property, salary & capital gain and share of profit from the partnership firm. The assessee during the year has sold many properties and shown long term capital gain of Rs. 2,14,07,457/- only. However, the AO was of the view that the assessee has carried out activities of land selling which is adventure in the nature of trade. Therefore, the AO re-worked out the income from the sale of land under the head business and profession amounting to Rs. 2,14,07,457/- and the AO further denied the benefit of deduction claimed u/s 54F of the Act. 4. On appeal, the Ld. CIT(A) held that the income on the sale of land is to be charged under the head capital gain and accordingly the AO was further directed to allow the exemption claimed by the assessee under the head 54F of the Act after necessary verification as per the provision of law. 5. Being aggrieved by the order of the Ld. CIT(A) the revenue is in appeal before us. 6. Both the Ld. DR and the Ld. AR before us vehemently supported the order of the authorities below as favourable to them. 7. We have heard the rival contentions of both the part....
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....acts in holding the land/properties to be in the nature of trading asset merely on the ground that some of the agricultural land were converted into non- agricultural land and some agreements were entered for the development of the land in the year under appeal acquired and held for decades in many cases. We find considerable weight in the plea of the assessee that intention at the time of purchase to hold impugned land/properties as a capital asset is manifest on records. The balance-sheet filed by the assessee over years, wealth-tax returns filed by the assessee, adequacy of its own capital clearly underscore the intention of the assessee to hold land/properties as capital asset as claimed. Inextricably, we also take note of the plea of the assessee that he is a co-owner of impugned land/properties holding certain percentage of ownership-rights therein and the claim of the land/properties as capital asset has been accepted by the Revenue in the hands of other co-owners in the assessment proceedings u/s. 143(3) of the Act. This fact has remained uncontroverted. We also note that having regard to the facts noted above, the Coordinate Bench of the Tribunal in assessee's own case....
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....ord pointing out any distinguishing feature in the facts of the case for the year under consideration and that of the earlier year cited above. Thus, respectfully following the order of Co-ordinate Bench discussed above, the ground of appeal of the revenue is hereby dismissed. 8. The next issue raised by the revenue in ground number 3 is that the Ld. CIT(A) erred in deleting the addition made by the AO for Rs. 1,89,412/- under the provisions of section 14A r.w. Rule 8D of Income Tax Rules. 9. The assessee in the year under consideration has shown exempt income amounting to Rs. 2,03,05,814/- but failed to make any disallowance against such exempt income in pursuance to the provisions of section 14A r.w. Rule 8D of Income Tax Rules. Accordingly, the AO invoked the relevant provision and made the disallowance as under: Sr. no Particulars Amount (in Rs.) 1 Direct Expenses Nil 2. Interest Expenses 61364 3. Administrative Expenses 128048 Total 189412 9.1 The AO, in view of the above, disallowed the expenses under the provision of section 14A r.w Rule 8D of Income Tax Rules and added to the total income of the assessee. 10. Aggrieved assessee preferred an appea....
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....en any explanation why such expenses should not be disallowed. Admittedly, assessee earned exempted income not chargeable to tax and therefore the expenses incurred by the assessee against such exempt income cannot be allowed while calculating the income chargeable to tax. The primary onus lies with the assessee to demonstrate that no administrative expense has been incurred by the assessee. However, from the order of the authorities below, we find that such an onus has not been discharged by the assessee. Therefore, we are of the view that the administrative expense against the exempted income needs to be worked out under the provisions of rule 8D of Income Tax Rules in the absence of any justification from the assessee. Accordingly, we confirmed the disallowance at Rs. 1,28,048/- only representing the disallowance of administrative expense as made by the AO. Hence, ground of appeal of the revenue is hereby partly allowed. 14. In the result, the appeal filed by the revenue is hereby partly allowed. Coming to ITA No. 718/Ahd/2023, an appeal by the Revenue for AY 2015-2016 15. The solitary issue raised by the revenue in the ground of appeal is that the Ld. CIT(A) erred in treati....