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2014 (12) TMI 216 - AT - Income TaxInterest on PDCs paid out of books of account deleted – Held that:- CIT(A) was rightly of the view that there is no evidence which proves that interest is paid from the date of sale to date of encashment of postdated cheques - where ever the date of PDCs are extended interest is paid @ 15% per annum in cash out of books of accounts which are evident from seized material - therefore, interest on PDCs to the extent of extension period appears to quite reasonable and logical - The ground raised by the Revenue is misconceived because CIT(A) has not deleted the addition but has only directed to recalculate the interest - after examining the loose papers seized at the time of search at the assessee’s premises, it was noticed that interest is paid on the PDCs only during the period of extension of PDCs – CIT(A) rightly directed the AO to re-compute the interest on PDCs at the time of extension of the PDCs - if it is not possible to work out the extension of PDCs in each case, then the AO is directed to recomputed interest on PDCs after six months from the date of issue of the PDCs – the order of the CIT(A) is upheld – Decided against revenue. Additional payment in violation of Stamp Duty Act, 1899 deleted u/s 37(1) – Held that:- When no expenditure is claimed by the assessee, the question of disallowing the same by the AO does not arise - the assessee was purchasing the land for and on behalf of another company of BPTP Group viz., M/s Countrywide Promoters Pvt. Ltd. and whatever payment is made by the assessee to land owners or their relatives for purchase of land was debited by the assessee to the account of CWPPL and the payment for purchase of land whether as per stamp duty or additional payment has not been claimed as an expenditure by the assessee - on this factual aspect, there is neither any finding by the CIT(A) nor by the AO – in Westland Developers Pvt. Ltd. Versus ACIT, Central Circle-23, New Delhi [2014 (12) TMI 254 - ITAT DELHI] - the principle is also accepted that when the expenditure is not claimed by the assessee, the same cannot be disallowed - However, the question still remains whether such payment i.e. additional payment made by the assessee to land owners or their relatives is claimed by the assessee as a deduction or not – thus, the matter is remitted back to the AO for verification and adjudication – Decided against revenue.
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