TMI Blog2015 (5) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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. - ITA No.1747/Del/2013, ITA No.1406/Del/2013 - - - Dated:- 2-1-2015 - Shri G.D. Agrawal Shri H.S. Sidhu JJ. For the Appellant : Shri V.S. Rastogi, AR. For the Respondent : Shri Vikram Sahai, Sr.DR. ORDER Per G.D. Agrawal, VP : These appeals by the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the provisions of Section 37(1) of the Income Tax Act, 1961 on account of additional payment in violation of Stamp Duty Act, 1899. 5. At the time of hearing before us, it is submitted by the learned counsel that during the year under consideration, the assessee company acquired various lands from farmers/villagers for and on behalf of M/s Countrywide Promoters (P) Ltd. (hereinafter referred to as CWPPL). As per the collaboration agreement between the assessee and CWPPL, CWPPL was to develop the land and sell it to the buyers. The assessee was only entitled to consolidated fee of ₹ 35,000/- per acre. In pursuance to above collaboration agreement, the assessee acquired the land and the cost of the purchase of land was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of additional payment. 7. It is submitted by the learned counsel that any payment which has not been claimed by the assessee as an expenditure cannot be disallowed. He stated that the assessee purchased the land for and on behalf of CWPPL and any payment for the purchase of land or for additional payment has been debited to the account of CWPPL. Therefore, when no deduction is claimed by the assessee for purchase of land or for additional payment, the disallowance under Section 40A(3) or for additional payment cannot be made in the hands of the assessee. 8. Learned DR, on the other hand, relied upon the order of the Assessing Officer. He stated that the assessee has purchased the land and handed over the same to CWPPL. Thus, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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