TMI Blog2022 (9) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment order, do not reveal any information gathered at the time of the sec. since the proceedings in the case of M/s Kapil consultancy services private Ltd nor any reference to the sec, since the proceedings in the case of M/s Kapil consultancy Pvt. Ltd to be found therein. The reopening in this matter has nothing to do with the search and seizure proceedings in the case of M/s Kapil consultancy Pvt. Ltd. Merely because they happen to be certain search action against M/s Kapil consultancy services Pvt. Ltd, it need not ipso facto be inferred that the present reopening proceedings have something to do with such search action. The reopening in this matter is altogether independent, as could be gathered from the reasons recorded in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of assessee includes purchase of agricultural lands in potential suburban areas and convert the agricultural land to non-agricultural land as per the regulations of land administration and town planning departments of State Government. The assessee-company filed their return of income for the assessment year 2013-14 on 27/09/2013 admitting total income of Rs. 1,62,54,319/-. A search and seizure operation under section 132 of the Income Tax Act, 1961 ( the Act ) was conducted on the group of M/s. Kapil Consultancy Services Pvt. Ltd., and others on 07/04/2017. The case of the assessee was re-opened under section 147 of the Act by issuance of notice dated 29/03/2019 under section 148 of the Act. Assessee s objections against re-open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under section 14A of the Act, but dismissed the appeal in respect of the addition towards interest on redeemable debentures to the tune of Rs. 52.92 lakhs. Assessee is therefore before us in this appeal. Ground No. 1 and 4 are general in nature and do not require any adjudication. Ground No. 2 relates to the challenged the reopening proceedings whereas ground No. 3 is in respect of the addition relating to the interest on account of the redeemable debentures, which we now proceed to adjudicate hereunder. 5. Insofar as the reopening is concerned, it is the argument of the Ld. AR that the reopening in this matter had arisen on account of the search and seizure carried out in the case of M/s Kapil consultancy services private limited on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore, there is no interest accrual in the hands of the assessee. 7. Ld. AR fairly brought to our notice that in an appeal involving the group company in ITA No. 651/Hyd/2020 and batch a coordinate Bench of this Tribunal considered the issues similar to the ones involved in this appeal. He filed a copy of the order dated 21/3/2022 in ITA No. 651/Hyd/2020 and batch. 8. Ld. DR relied on the observations of the Ld. CIT(A) and submitted that the Ld. CIT(A) considered the case law on this aspect and held that the learned Assessing Officer satisfied and had a reason to believe that finance cost was actually spent on the development of land, the assessee resorted to misrepresentation of the finance cost as land development cost on u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration forthcoming from the assessee as to how the case on hand is different either in fact or law from the ones in the case of group companies. Apart from this, the reasons recorded by the learned Assessing Officer in this matter, as could be found at paragraph No. 3 of the assessment order, do not reveal any information gathered at the time of the sec. since the proceedings in the case of M/s Kapil consultancy services private Ltd nor any reference to the sec. since the proceedings in the case of M/s Kapil consultancy Pvt. Ltd to be found therein. The reopening in this matter has nothing to do with the search and seizure proceedings in the case of M/s Kapil consultancy Pvt. Ltd. Merely because they happen to be certain search action again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and whether or not the assessee received any interest or creditor the same in their books. 12. Since there is no change in facts or law, while respectfully following the view taken in the case of group companies in ITA No. 651 /Hyd/ 2020 by order dated 21/3/2022, we set aside the findings of the authorities below and restore the issue to the file of the learned Assessing Officer to verify the fact relating to the debentures the scheme and also whether the assessee received and credited any such interest in their books in the relevant previous year. This ground is allowed for statistical purpose. 13. In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open court on this the 22nd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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