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TMI Blog2021 (7) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... e is accordingly dismissed. Additional payment in violation of the Stamp Duty Act, 1899 - disallowance under section 37 of the Act on account of additional payments for purchase of land - HELD THAT:- As decided in own case [ 2018 (6) TMI 63 - ITAT DELHI] CIT(A) has given categorical finding that the payment for acquiring land cannot be said disbursement of expense or not claimed as expense. In case of owner i.e. assessee effectively the owner of the land is purchasing the same and selling all the rights in said land at a cost of land plus ₹ 35,000 per acre. Therefore, the cost of land plus ₹ 35,000 per acre is the sale cost which effectively claimed but due to accounting entries, such transaction gets squared up to the extent of cost of land, as such owner including the assessee is directly crediting ₹ 35,000 per acre in its P L account. - Decided in favour of assessee. - ITA No.6344/Del/2013 - - - Dated:- 30-6-2021 - Shri Kul Bharat, Judicial Member And Shri O.P. Kant, Accountant Member For the Appellant : Ms. Nidhi Srivastava, CIT(DR) For the Respondent : Sh. Ajay Bhagwani, CA ORDER PER O.P. KANT, AM: This appeal by the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qua the issue-in-dispute are that the assessee company belongs to BPTP Group of Companies, which are owned and controlled by Sh. Kabul Chawla. The group companies are engaged in the business of real estate development and operating mainly in the National Capital Region (NCR) Area, including Faridabad, Gurgaon and Noida. During the course of search operation at the premises of the BPTP Group companies, certain incriminating documents were seized. From the seized documents and post search inquiries conducted, it was observed by the Department that BPTP Group companies, including the assessee, had purchased huge tract of land in different villages of Faridabad such as Kherikhurd, Kheriklan, Budena, Bhatola etc. The Assessing Officer also observed that the Group was following a business model under which only a part payment of the sale consideration for the purchase of land was used to be made at the time of the execution of sale deed and balance sale consideration was invariably made through post dated cheques (PDC). For the period between the date of the sale deed and date of the encashment of PDC i.e. intervening period, the assessee used to pay interest in cash to the vendors o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed income. Hence, an addition of ₹ 33,081,969/- is made in the income of the assessee company. In view of the above discussion, the undersigned is satisfied that the assessee company by - paying interest to the vendors of the land out of its undisclosed income has concealed its income and for that penalty proceedings u/s 271_(l )(c) have been initiated separately. ( addition of ₹ 33,081,969/-) 6.2 The said addition was further increased to ₹ 4,13,41,937/- as per rectification order under section 154 of the Act dated 29/04/2010. The Ld. CIT(A) also analyzed the seized documents in para 6.3 of the impugned order. Though the Ld. CIT(A) held that seized documents proved that interest was paid on PDCs, however, he directed the Assessing Officer to compute the interest after six months from the date of the sale and accordingly, he partly allowed the appeal. Pursuant to the direction of the Ld. CIT(A), the Assessing Officer deleted the addition of ₹ 3,34,75,648/-whereas the addition of ₹ 78,66,289/- was confirmed. 6.3 Aggrieved with the above relief of ₹ 3,34,75,648/- , the Revenue is in appeal before the Tribunal. 6.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest is paid on the post dated cheques only during the period of extension of post dated cheques and therefore he directed the assessing officer to recompute the interest on post dated cheques at the time of extension of the post dated cheques. He further observed that if it is not possible to extension of post-dated cheques in each case, then assessing officer is directed to recompute interest on post dated cheques of 6 months from the date of the issuei of post-dated cheques. Therefore the ground of appeal of the revenue that the CIT (A) deleted the addition of peace 506625/- macie by the assessing officer on account of interest on post dated cheques respectively incorrect and contrary to the order of the Ld. CIT (A). The CIT (A) directed to recalculate the interest on post dated cheques and was a sound logic for such direction. His direction is based 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 the Ld. CIT(A) in this regard accordingly, we reject ground No. 1 of the revenue's appeal 11. Ld. Departmental Representative could not show us any reason to deviate from the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no disallowance could be made. The Ld. CIT(A) accepted the contention of the assessee regarding no violation of any provision of the Stamp Duty Act, however, he did not accept the contention of the assessee that no disallowance should be made due to non-claim of deduction. The Ld. CIT(A) gave certain directions like verification of stamp paper and court fee charges for quantification of the disallowance to be made. On the direction of Ld. CIT(A), the Assessing Officer while giving appeal effect deleted the disallowance of ₹ 6,80,15,748 and sustained the balance amount of ₹ 8,56,250/-. The Revenue is aggrieved with the relief of ₹ 6,80,15,748/- allowed by the learned CIT(A). 7.2 We have heard the representatives of both the parties. The Learned Counsel of the assessee submitted that issue-in-dispute is covered in favour of the assessee by the order of the Tribunal in the case of the assessee in ITA No. 1077/Del/2015 for assessment year 2010-11 and other cases of the group decided by the Tribunal. 7.3 The Learned DR though relied on the order of the Assessing Officer, however, could not controvert the fact that the Tribunal has decided the identical issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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