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2021 (3) TMI 518 - ITAT DELHIAssessment u/s 153A - Addition u/s 68 - HELD THAT:- Since no incriminating material was found in the assessee’s case, no addition can be made in the present case. Besides this, the assessee has made investment in prior period and sold the said investment in this particular year which was clearly set out from the submissions and the evidences produced before the Assessing Officer and the CIT(A). Therefore, the appeal of the assessee allowed. Disallowance u/s 40A(3) - assessee had purchased land and made part payment in cash - disallowance made by the Assessing Officer, confirmed by the CIT(A) was deleted by accepting the plea of assessee since assessee has neither debited the amount of cost of land in Profit and Loss account nor claimed any deduction in respect of cost of land through computation - HELD THAT:- Assessee has received reimbursement of all amounts paid related to transaction of purchase of land, stamp duty, Registration Charges as per Clause 3(b) of Collaboration Agreement. Bases on the agreement the assessee showed the income by way of fees at ₹ 35,000/- per acre in the year in which license on said land was received. While making the addition the Assessing Officer has totally ignored para 3.3 (b) of the Collaboration Agreement which clearly shows that Countrywide Promoters Pvt. Ltd. shall reimbursement of cost and expenses incurred by the assessee with respect to acquisition of land. The assessee has maintained proper books of accounts and all these transactions along with expenses were thoroughly shows in the books of accounts specially that of reimbursement as well. AO at no point of time rejected the books of accounts of the assessee. Though the finding of the Assessing Officer as well as CIT(A) is that the assessee was carrying business of development of real estate. From the perusal of record, it can be seen that these facts are not correct. The assessee is only carrying out acquisition of land and he expenses incurred on transactions of purchase of lands. As decided in WESTLAND DEVELOPERS PVT. LTD. VERSUS ACIT, CENTRAL CIRCLE-23, NEW DELHI [2014 (12) TMI 254 - ITAT DELHI] Tribunal has dealt this issue and allowed the similar issue relating to reimbursement made by the Country Wide Promoters Pvt. Ltd. The Ld. DR could not point out the distinguishing facts. Thus, the facts of the present case are also identical. Therefore, Ground No. 4 & 4.1 are allowed. Disallowance u/s 37 on account of additional payments for the purchase of land - assessee had challenged before the CIT(A) that the deduction of the purchase of land having not been claimed by the appellant, no disallowance could be made- HELD THAT:- As payments/transactions which were duly recorded in books of account. As the facts of the present assessee are identical to that of the group of companies in case of Westland Developers Pvt. Ltd [2014 (12) TMI 254 - ITAT DELHI] and M/s Vasundhara Promoters Pvt. Ltd. [2018 (6) TMI 74 - DELHI HIGH COURT] the issue is allowed. The DR could not distinguish any facts for the present assessment year. In fact, the assessee having not claimed the expenditure, the same cannot be disallowed under Section 37 of the Act on account of additional payment for the purchase of land. - Decided in favour of assessee.
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