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TMI Blog2015 (6) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. The clause 3.2 of the MOU entered into between the appellant and M/s Vikram Electric Equipment Pvt. Ltd clearly show that M/s Vikram Electric Equipment Pvt. Ltd was working on principal to principal basis and the amount paid to M/s Vikram Electric Equipment Pvt. Ltd was for consolidation of 27 acres of land and surrendering of its rights in favour of the appellant company. The provisions of section 40(a)(ia) are not attracted in this case as the appellant has not claimed any deduction for any expenses on account of payment to M/s Vikram Electric Equipment Pvt. Ltd, either in its profit and loss account or in the computation of taxable income filed. See M/s Finian Estates vs. ITO [2012 (6) TMI 705 - ITAT, Delhi] - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14,500/- each from M/s Lysander Builders Developers Pvt. Ltd. and M/s Eldoris Builders Developers Pvt. Ltd. which was utilized in repayment of Loan from DLF Universal Ltd. ASSESSING OFFICER has further recorded in the assessment order that by issuing 391029 unsecured debentures of ₹ 500/- each to M/s Lysander Builders Developers Pvt. Ltd. and Eldoris Builders Developers Pvt. Ltd., Appellant has violated provisions of section 269T of the LT. Act being made repayment other-wise than by crossed cheque or bank draft. The Additional CIT was intimated to initiate the penalty proceedings U/S 271E for the above mentioned default. ASSESSING OFFICER has held in his order that all expenses claimed by the Appellant are pre-operative expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,40,66,628/- appearing in the name of Sh. Mast Ram, which assessee during the course of assessment proceedings claimed to be in the name of M/s Vikram Electric Equipment Pvt Ltd as genuine? 3. Whether in the facts and circumstances of the case and without prejudice above grounds Ld CIT(A) was right in holding that the payment allowed to M/s Vikram Electric Equipment Pvt Ltd for consolidation of land are not in the nature of commission? 4. Whether in the facts and circumstances of the case Ld CIT(A) has erred in not holding that consolidation charges are merely different nomenclature for commission as such liable for deduction of tax and consequent disallowance u/s 40(i)(a) of the I T Act, 1961 in the event of default 5. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttracted in this case as the appellant has not claimed any deduction for any expenses on account of payment to M/s Vikram Electric Equipment Pvt. Ltd, either in its profit and loss account or in the computation of taxable income filed. Hence, the ground of appeal No. 3 raised by the appellant is allowed in favour of the appellant. 5. The Ld.D.R. could not controvert the arguments of the assessee that the issue is squarely covered by the decision of Hon'ble ITAT the Delhi B Bench in the case of M/s Finian Estates vs. ITO in ITA no. 1953/Del/2011, where the issue of payments to M/s Vikram Pvt.Ltd. was involved. Under the circumstances we uphold the order of the First Appellate Authority and dismiss this appeal of the Revenue. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2 of the MOU entered into between the appellant and M/s Vikram Electric Equipment Pvt. Ltd clearly show that M/s Vikram Electric Equipment Pvt. Ltd was working on principal to principal basis and the amount paid to M/s Vikram Electric Equipment Pvt. Ltd was for consolidation of 27 acres of land and surrendering of its rights in favour of the appellant company. In view of the above the payment made to M/s Vikram Electric Equipment Pvt. Ltd was genuine payment and same was related to purchase of land and surrendering of its rights in the land purchased by the appellant company. Therefore, the addition made by the ASSESSING OFFICER is deleted. Further, the provisions of section 40(a)(ia) are not attracted in this case as the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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