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TMI Blog2018 (1) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... taining the disallowance of Rs. 13,43,600/- u/s 40A(3) of the IT Act despite the fact that no deduction in respect of said sum was claimed in the computation of income from business. 3. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing." 2. Brief facts of the case are as under: Original assessment in present case was completed on 31/12/08 under section 143(3), wherein disallowance of Rs. 13,43,600/-was made under section 40A(3) in respect of cash payment made for purchase of land. Assessee is a group company of M/s BPTP Ltd., engaged in the development of real estate. For the year under consideration search and seizure was carried out at various premises of M/s BPTP Ltd., and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords and after giving a careful consideration to the rival submissions, it is seen that the fact remains unassailed on record that the expenditure disallowed by the AO, which has been upheld by the Ld.CIT(A), was never claimed as an expense by the assessee. Section 40A starts with the non-obstante clause setting out that provisions of this section shall have effect notwithstanding anything to the contrary contained in any other provisions of the Act relating to the computation of income under the head 'profits and gains of business or profession'. Sub-section (3) of section 40A is an exception to the deductibility of expenditure under the computation provisions of 'profits and gains of business or profession'. Thus consequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of that expenditure, as deduction. Thus, the finding arrived at in this regard, by the learned CIT (A), and the learned Tribunal cannot be said to be wrong. Question No.2 is accordingly answered in favour of the assessee and against the Revenue. 17. Similarly, it is seen that the judgement of the Hon'ble Punjab & Haryana High Court in the case of CI'I' vs Alpha Toyo Ltd. (2008) 174 Taxmann 427 (P & H) also fully supports the view taken. For readyreference, we reproduce paras 6 & 7 of the said judgement:- "We have heard learned counsel for the revenue. The Tribunal has found as a fact that the annual reports for the assessment year 1989-90 of the assessee clearly shows the outstanding loans to the three parties as on 1-4- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in assessee's own case for the same assessment year in the original assessment proceedings. 3.3. Ld. CIT, DR supported the order passed by authorities below. 4. We have perused the submissions advanced by both the sides in the light of the records placed before us. 4.1. It is observed that in the assessment under section 153A for the year under consideration Ld.AO should have started the assessment from the last assessed income, instead of starting with the returned income. It is observed that assessing officer in the proceedings under section 153A of the Act again made same disallowance, made by his predecessor in original assessment proceedings, which has been deleted by this Tribunal in ITA No. 1761/del/2013 vide Consolidated order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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