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TMI Blog2017 (11) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... for the disposal of the appeal are that the assessee is a company incorporated under Companies Act, 1956 and is dealing in the Real Estate Development and Operations. For the AY 2007-08 they have filed their return of income on 22.10.2007 declaring the loss of Rs. 9,050/-. Assessing Officer during the scrutiny u/s 143(3) of the Income Tax Act, 1961 (for short called as the "Act") made three additions namely a sum of Rs. 43,88,201/- on account of the interest paid in respect of the post dated cheques issued by the assessee to the vendors of the land, Rs. 97,45,249/- on account of the additional payments made over and above the sale consideration mentioned in the agreement of sale and a further sum of Rs. 4,56,502/- on account of the cash pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rship of the land was continued with the assessee and the contention of the assessee that the cost of land was reimbursed by CWPPL was not acceptable, as such the cash payments in excess of Rs. 20,000/- are hit by Section 40A(3) of the Act. 4. Challenging the findings of the Ld. CIT (A) in granting relief to the assessee in respect of interest on PDCs, and also the additional payment, the Revenue is in appeal before us; whereas challenging the findings of the Ld. CIT (A) in respect of sustaining the interest on PDCs for the period beyond six months, sustaining a part of the additional payments and the disallowance u/s 40(A)(3) the assessee is in appeal. 5. Now coming to the aspect of interest on PDCs, it is an admitted fact that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on material found and seized at the time of search. In view of the above, we do not find any justification to interfere with the order of learned CIT(A) in this regard..." 6. Now coming to the additional payment over and above the agreement price, a similar payment was involved in the case of M/s IAG Promoters and Developers Pvt. Ltd. and vide paragraph no. 11, the Tribunal considered this issue and found that there was neither any finding by the Ld. CIT (A) nor by the Assessing Officer on the aspect of whether such a payment was claimed as an expenditure while computing its business income, as such, the issue was set aside to the file of the AO directing him to verify whether the assessee has claimed such payment as an expenditure, and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relatives is claimed by the assessee as a deduction or not. We, therefore, set aside this matter to the file of the Assessing Officer and direct him to verify whether the assessee has claimed the payment of Rs. 1,01,32,501/- as an expenditure while computing its business income. If no deduction is claimed, then the question of any disallowance would not arise. If the deduction is claimed, then the Assessing Officer would work out the disallowance as directed by the CIT(A)." 7. Nothing contrary is brought to our notice on either of the aspects. Hence, while respectfully following the above, we upheld the findings of the Ld. CIT (A) and dismiss the grounds of appeals of both assessee and the Ld. CIT (A) on the aspect of interest on PDCs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances and has no applicability to the facts of the present case. Consequently, it is seen that from the ratio of the judgements relied upon before the CIT(A) and also before us which have been discussed in the earlier part of this order no arguments have been advanced by the Revenue so as to contend how they are not applicable to the case at hand, no distinguishing fact, circumstance or position of law has been relied upon so as to come to a contrary finding than the one arrived at. Accordingly on a consideration of the peculiar facts and circumstances of the case and the judgements relied upon considering the relevant provision of the Act namely Section 40A(3), we hold for the detailed reasons given hereinabove that Section 40A(3) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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