Capital Payment for Land Purchase Cannot Be Disallowed Under Section 40A(3): ITAT Nagpur

Ganesh Builders Ltd. Vs DCIT (ITAT Nagpur) The appeals before the ITAT Nagpur arose from a common order passed by the Commissioner of Income Tax (Appeals) for Assessment Years 2013–14 and 2014–15. The assessee, a public limited company engaged in business activities, challenged additions made by the Assessing Officer (AO) and confirmed by the CIT(A), primarily relating to disallowance under Section 40A(3) and treatment of agricultural income. For Assessment Year 2013–14, the assessee had filed its return declaring income of ₹1.07 crore. During scrutiny assessment under Section 143(3), ...