Cot of land treating it as stock in trade

 ITAT holds that, 40 A(3) is applicable for purchase of land , despite not claimed as business expenditure, treating it as stock in trade

In the AY 2012-13, the assessee purchases land and treated it as investments along with someone else. The ITAT, holds the transaction as one of purchase of stock in trade, on the basis that, an agreement for sale of the same was entered into immediately on the purchase ( even though it did not materialise), and there is marked increase of 33%, in rate agreed for sale. Thus, it disallows the cash payments for the same u/s 40A(3)