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2015 (5) TMI 384 - AT - Income TaxDisallowance under Section 40A(3)- additional payment in violation of Stamp Duty Act - whether Additional Payments having not been claimed as deduction by appellant, no disallowance could have been made in the hands of the appellant - Held that:- As per the collaboration agreement, the assessee was to purchase the land for and on behalf of CWPPL and whatever was the purchase price including the additional payment was debited to CWPPL and the assessee only received fixed remuneration i.e. ₹ 35,000/- per acre. Thus, we agree with the contention of the learned counsel that the assessee has not claimed any deduction in respect of cost of the purchase of the land, whether original or additional payment. When the cost of the land as well as additional payment is not claimed by the assessee as deduction, 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. - Decided in favour of assessee.
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