Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 89 - AT - Income TaxAddition on account of interest on PDCs Paid out Side the books of account - CIT(A) has upheld the addition of cash payment of interest on PDC, however, he directed to charge interest for six month after the sale deed - HELD THAT:- Identical issue was before the Tribunal in the case of M/s. Impower Infrastructure Private Limited [2018 (5) TMI 2071 - ITAT DELHI] as held assessee was used to pay part payments of the sale consideration in respect of the land purchased at the time of execution of the sale-deed and the payments of balance sale consideration were invariably made through post dated cheques (PDCs) and for the intervening period) i.e. period between the date of sale deed and the date of encashment of PDCs), interest was paid in cash to the vendors of the land by the vendee company on monthly basis @ 1.25% p.m. on the amount of PDCs and this cash payment of interest by the vendee company, was not accounted for by it, in its books of account. - Thus we uphold the finding of the Learned CIT(A) on the issue-in-dispute. The ground of the appeal of the Revenue is accordingly dismissed. Additional payment in violation of the Stamp Duty Act, 1899 - disallowance under section 37 of the Act on account of additional payments for purchase of land - HELD THAT:- As decided in own case [2018 (6) TMI 63 - ITAT DELHI]CIT(A) has given categorical finding that the payment for acquiring land cannot be said disbursement of expense or not claimed as expense. In case of owner i.e. assessee effectively the owner of the land is purchasing the same and selling all the rights in said land at a cost of land plus ₹ 35,000 per acre. Therefore, the cost of land plus ₹ 35,000 per acre is the sale cost which effectively claimed but due to accounting entries, such transaction gets squared up to the extent of cost of land, as such owner including the assessee is directly crediting ₹ 35,000 per acre in its P&L account. - Decided in favour of assessee.
|