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TMI Blog2017 (5) TMI 1706X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gain without taking into account the expenditure incurred after the purchase of plot. This approach of AO is incorrect as for developing a plot, some expenditure is bound to be incurred. Therefore, this issue requires readjudication by the AO and accordingly set aside the order of CIT(Appeals) and restore the matter to the file of AO with a direction to reexamine the claim of expenditure incurred in levelling of the plot or otherwise relevant for the purpose of computation of short term capital gain. - Appeals of the assesses are allowed for statistical purposes. - ITA Nos.539 & 542/Bang/2017, ITA Nos.575, 540 & 541/Bang/2017 - - - Dated:- 26-5-2017 - Shri Sunil Kumar Yadav, Judicial Member Appellants by :Smt. Pra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... existence which carried on the transaction as business transaction/ adventure in the nature of trade and accordingly the AOP alone was liable to tax and no part of the income if any of the AOP was liable to be confirmed in the hands of the appellant. 7. On the facts the learned CIT(A) ought to have appreciated that the transaction did not yield income which had ended up in loss and even if the appellant was liable to be assessed on his share it was loss, which was required to be considered for set off against his other income. 8. The learned CIT(A) ought to have given adequate opportunity to the appellant for providing the details with regard to various income incurred in connection with the same purchase which had direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pening of the assessment framed in the hands of assesses is not proper and deserves to be quashed. 3. The ld. DR, on the other hand, has submitted that as per information gathered it was found that assessees along with 6 other persons have purchased two plots of converted land measuring 1 acre 9.5 guntas and 2 acres 35 guntas in See. No.8, Vaddarapalya Village, Uttarahalli Hobli, Bangalore South. These plots were purchased on 01.07.2004 and 30.10.2004 respectively with a total investment of ₹ 30,50,610. The land was divided into smaller plots which were sold over a period of time during the FY 2004-05 to 2012-13. In this regard, it was found that during the year under consideration some plots were sold to different persons a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assesses and on the basis of that information, assessment was reopened. Therefore, I do not find any irregularity in reopening of assessment. Moreover, I have also carefully examined the order of CIT(Appeals) in this regard and I find myself in agreement with it. Accordingly, I confirm his order in this regard. 5. On merits, the ld. counsel for the assessee has submitted that while computing the short term capital gain in the hands of assessee, the CIT(Appeals) has not allowed the cost of improvement incurred on leveling of plots for its carving out. Assessee has claimed the cost of improvement in the form of expenditure incurred in levelling and marketing, but the same was not allowed by the CIT(Appeals) on the ground that thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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