Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 12 - AT - Income TaxDisallowance u/s. 40A(3) - Held that:- Respectfully following the precedent of M/s Westland Developers Pvt. Ltd., vs. ACIT [2014 (12) TMI 254 - ITAT DELHI] wherein the Tribunal held that “Accordingly, on a consideration of the peculiar facts and circumstances of the case and the judgments relied upon considering the relevant provision of the Act namely Section 40A(3), we hold for the detailed reasons given hereinabove that Section 40A(3) of the Act has been wrongly invoked as admittedly no expenses relatable to the addition has been claimed and the assessee has successfully demonstrated that the payment were reimbursement made by CWPPL. - Decided in favour of assessee. Interest on PDCs paid out of books of account - CIT(A) deleted the addition - Held that:- Respectfully following the precedent of M/s IAG Promoter & Developers (P) Ltd. vs. ACIT [ 2014 (12) TMI 216 - ITAT DELHI] wherein the Tribunal held 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 - Decided against revenue. Deemed dividend - CIT(A) deleted the addition - Held that:- Find considerable cogency in the contention of the Ld. Counsel of the assessee that the issue in dispute in the present case has been squarely covered in favor of the assessee by the decision of the Hon’ble Delhi High Court in CIT vs. Ankitech P Ltd. [2011 (5) TMI 325 - DELHI HIGH COURT ] stating that the legal fiction of section 2(22)(e) does not extend to “shareholder”. The fiction is not to be extended further for broadening the concept of shareholders. - Decided in favour of assessee.
|