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2019 (11) TMI 1105 - ITAT DELHIReopening of assessment u/s 147 - action u/s.147 taken in the hands of the Appellant based on such seized material - HELD THAT:- If, one reads the Explanation-2 to section 147 of the Act including the proviso thereto, then it is clear that where the AO reopens assessment within a period of four years, it can do so on the ground of income having escaped assessment. Even, if there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. The information of aforesaid modus-operandi has been received by the AO after post search enquiries conducted by the Department in the group cases, hence this information was not available at the time of assessment order. Moreover, there is no reference of modus-operandi or any search in the original assessment record. Therefore, the contention of the ld.Counsel that proviso to section 147 is applicable and there was no failure on the part on the assessee to disclose all material facts necessary for the assessment is without any basis and not applicable as the assessment has been reopened within four years from the end of relevant assessment year. We find that in group cases of the assessee, it has been categorically established the modus-operandi followed by the group companies and the assessee was also found indulging in land purchases. The sufficiency or correctness of the material is not a thing to be considered at such stage. Therefore, considering these facts on record,we are of the considered opinion that AO was justified in reopening assessment. Addition on account of PDC interest - HELD THAT:- We find that the modus operandi adopted by the Group has been established from the findings as given in the number of group concern. We find that Ld. CIT (A) has found that wherever the date of post dated cheque was extended, interest was being paid at 15% p.a. in cash out of books of account as was evident from the seized material, therefore, the interest on PDC to the extent of extension period was logical. Ld. CIT (A), therefore, directed the AO to re-compute the interest on PDC either on the sale consideration or additional payment to the extent of extended period of PDCs by the AO and in case the working out of the same is not possible, to re-compute the interest on PDCs after six months from the date of issue of PDCs i.e. date of sale, as six months is taken as reasonable period for giving PDC as per sale deed. The Ld. CIT(A) has above relied on the statement of Shri Chhoturam as mentioned above. - As relying on M/S IAG PROMOTER & DEVELOPERS (P) LTD. [2014 (12) TMI 216 - ITAT DELHI] we upheld findings of Ld. CIT(A) in sustaining the addition - Decided against assessee.
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