Assessee has claimed the pre-operative expense as cost of improvement being related to transfer of property.  However, AO disallowed the same stating that the same is not related to transfer of property.  CIT(A) upheld the action of AO.  Tribunal thus disallowed pre-operative expenditure stating, as it was not in connection with transfer of property but was routine expenditure related to assessee’s business, thus, it could not be treated as expense incurred in relation to the sale of property. The issue of payment of brokerage and professional fees, the Tribunal restored the matter back to the AO to allow the assessee to furnish supporting evidence.  (AY.  2010-11)