ITAT disallows expense of Property Not Used for Business Purpose

Dream Buildcon Pvt. Limited Vs Income Tax Officer (ITAT Kolkata) ITAT disallowed the expenses claimed by by stating that a property not used for business purposes cannot be treated as a business asset. The property in question was sold and a new property was purchased using the proceeds. The expenses incurred on the new property, including watch & ward expenses and electricity expenses, were disallowed as the property was not shown as a business asset and depreciation was not claimed. Extract From ITAT order – The case of the assessee is that it had purchased a property at Vasant Vih...