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2017 (11) TMI 1132 - AT - Income TaxDisallowance on account of additional payment made for the purchase of land - as per assessee he has not claimed the expenses made categorized as Additional payment as a deduction either by debiting to Profit and Loss account or through computation and therefore Assessing Officer was not justified in disallowing the same - Held that:- The assessee has also either acted as a land holding company purchasing land and transferring the development rights in respect of land purchased to BPTOP Ltd. or accumulating development rights in respect of land purchased by other group companies and transferring these land development rights to BPTOP Ltd. To that extent, the facts of case of assessee company are similar and identical to the facts of other cases which are decided by various coordinate benches of Tribunal, New Delhi on which reliance is placed by the learned AR of the assessee. There is nothing on record that Additional payment is not recorded in books of account and we are unable to find any mention by the Assessing Officer in assessment order or by the learned CIT (Appeals) in his order. Accordingly, the argument of the learned CIT [DR] that Additional payment is not recorded in books of accounts is not factually correct. As facts of case of assessee are similar and identical to the various cases decided by coordinate benches of Tribunal, New Delhi where similar disallowance has been deleted by the Tribunal in other group cases cited by the assessee. Being bound by the decision of the Coordinate Bench, it is held that no disallowance of additional payment can be made. In the result, it is held that the learned CIT (Appeals) was not justified in upholding part of the disallowance of additional payment on the ground that neither the assessee has debited additional payment in its Profit & Loss account nor has claimed it. - Decided in favour of assessee. Disallowance of cash payment made under section 40A(3) is deleted as assessee has not claimed any deduction in respect of cash payment made. Assessment u/s 153A - Held that:- Validity of notice was not upheld on the ground that satisfaction note was silent about the assessment year in which incriminating information was discovered on search. See CIT vs Singhad Technical Education Society [2015 (4) TMI 190 - BOMBAY HIGH COURT]. As the Assessing Officer has failed to record the said documents in the satisfaction note and in our considered view, the Assessing Officer cannot go beyond the documents referred in the satisfaction note. Accordingly on this reason alone, this document could not be considered for assessment under section 153-C and the above document cannot be used in the assessment made u/s. 153-C, therefore, the addition of ₹ 9 lacs is not warranted and is hereby deleted. - Decided in favour of assessee.
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