Addition u/s 40A(3) being 20% of the amount paid - assessee was ...

Cash Land Purchase Recorded in Balance Sheet, Not Profit & Loss; No Section 40A(3) Additions Applied.

May 20, 2020

Case Laws Income Tax AT

Addition u/s 40A(3) being 20% of the amount paid - assessee was acquiring the land from the various farmers by paying cash to them and debiting it to the capital work in progress account. This sum was not claimed as an “expenditure‟ in the profit and loss account. - The whole transaction of purchase of land as well as transfer to the sister concern was not routed through profit and loss account but were shown in the balance sheet. - No additions.

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Addition u/s 40A(3) being 20% of the amount paid - assessee was ...

Cash Land Purchase Recorded in Balance Sheet, Not Profit & Loss; No Section 40A(3) Additions Applied.

May 20, 2020

Case Laws Income Tax AT

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