Expense on developing & maintaining land for real estate activity is Allowable

Sri S.K Bhaskar Raju Vs Addl. CIT (ITAT Bangalore) The issue under consideration is whether the AO is correct in disallowing expenses incurred on developing and maintaining land in connection with real estate activity? In the present case, the assessee owned certain lands at Bangalore. He took the responsibility to sell adjacent land belonging to some other person. The assessee developed the adjacent land by incurring expenses towards cleaning the same, putting fencing, paying watchman salary, legal fees etc., aggregating to Rs.8.50 lakhs. It is stated that the assessee incurred those expenses...