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2015 (4) TMI 1216 - AT - Income TaxDisallowance under Section 40A(3) - cost of the land as well as additional payment - expenditure not claimed - Held that:- The issue as raised squarely covered by the order of the co-ordinate bench as reproduced in M/s. Glitz Builders (2015 (5) TMI 384 - ITAT DELHI ). We concur with the finding of the co-ordinate Bench that when the cost of the land as well as additional payment has not been claimed by the assessee as deduction, then the question of any disallowance under Section 40A(3) or otherwise in the case of the assessee does not arise. We, therefore, delete the entire disallowance made by the Assessing Officer under Section 40A(3) as well as additional payment. Respectfully following the precedent as aforesaid we allow grounds of the assessee for Assessment Year 2006-07 and dismiss the ground of revenue. Addition on account of Interest on PDCs paid out of books of account - Held that:- The PDCs’ have been encashed within a period of six months as is apparent from page 11 of assessment order where A.O. has noted the date of sale of properties and date of encashment of cheques. Therefore, we find that the facts in the present case are similar in one of the Sister concern i.e. case of M/s IAG Promoters and Development Pvt. Ltd [2014 (12) TMI 216 - ITAT DELHI] therefore, following the Tribunal order in the case of group company, we dismiss this appeal of Revenue. Disallowance an additional payments u/s 37 - main contention of the ld AR is that having not claimed the expenditure, the same cannot be disallowed - Held that:- When the additional payment has not been claimed by the assessee as deduction, then the question of any disallowance. See M/s. Glitz Builders (2015 (5) TMI 384 - ITAT DELHI ) Addition made on account of interest on PDC - Held that:- The ground of revenue is factually incorrect and it was only a direction of ld CIT(A) to AO to re-calculate the interest on PDC’s on the basis of material seized during search and as per the direction the AO has found that there was no interest payable since the PDC were encashed before six months and we have already dismissed the appeal of the revenue on identical ground in earlier years, so on identical reason following the order of the Tribunal in M/s, IAG Promoters, we are inclined to dismiss this ground of the revenue.
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