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Dy. CIT, Circle 10 (1) New Delhi Versus M/s Mohak Real Estate Pvt. Ltd.

2015 (6) TMI 558 - ITAT DELHI

TDS u/s 194H - Disallowance under section 40(a)(ia) - whether CIT(A) was right in holding that the payment allowed to M/s Vikram Electric Equipment Pvt Ltd for consolidation of land are not in the nature of commission? - Held that:- Payments made to M/s Vikram Electric Equipment Pvt. Ltd. as land consolidator were not for any services rendered but same were made for consolidation of land and surrendering of its rights in the land in favour of the appellant. M/s Vikram Electric Equipment Pvt. Ltd .....

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appellant company.

The provisions of section 40(a)(ia) are not attracted in this case as the appellant has not claimed any deduction for any expenses on account of payment to M/s Vikram Electric Equipment Pvt. Ltd, either in its profit and loss account or in the computation of taxable income filed. See M/s Finian Estates vs. ITO [2012 (6) TMI 705 - ITAT, Delhi] - Decided in favour of assessee. - ITA No. 4351/Del/2012, ITA No. 3577/Del/2012 - Dated:- 20-5-2015 - J Sudhakar Reddy, A .....

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07-08. 1.1. As these appeals belong to the same group, for the sake of convenience they are heard together and are disposed of by way of this consolidated order. 2. First let us take ITA no.4351/Del/12 pertaining to the AY 2006-07. The facts are brought out at para 4 of the Ld.CIT(A)'s order which are extracted for ready reference. "The brief facts are that the appellant filed its return of income declaring loss of ₹ 91,70,837/- and AO had completed the assessment u/s 143(3) at an .....

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ilized in repayment of Loan from DLF Universal Ltd. ASSESSING OFFICER has further recorded in the assessment order that by issuing 391029 unsecured debentures of ₹ 500/- each to M/s Lysander Builders & Developers Pvt. Ltd. and Eldoris Builders & Developers Pvt. Ltd., Appellant has violated provisions of section 269T of the LT. Act being made repayment other-wise than by crossed cheque or bank draft. The Additional CIT was intimated to initiate the penalty proceedings U/S 271E for t .....

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66,628/- was payable. In the Order ASSESSING OFFICER has claimed that Appellant has taken U-turn and changed the name of creditor from Mast Ram to M/s Vikram Electric Equipment Pvt. Ltd. Further ASSESSING OFFICER has claimed that payment made to M/s Vikram Electric Equipment Pvt. Ltd. is in the nature of commission and therefore liable for deduction of TDS. Further ASSESSING OFFICER has held that amount payable to M/s Vikram is a bogus creditor. Therefore, said amount of ₹ 1,40,66,6281- ha .....

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rative expenditure related to investments? 2. Whether in the facts and circumstances Ld CIT(A) was right in holding that the credit of ₹ 1,40,66,628/- appearing in the name of Sh. Mast Ram, which assessee during the course of assessment proceedings claimed to be in the name of M/s Vikram Electric Equipment Pvt Ltd as genuine? 3. Whether in the facts and circumstances of the case and without prejudice above grounds Ld CIT(A) was right in holding that the payment allowed to M/s Vikram Electr .....

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hearing rival contentions we find that the First Appellate Authority at page 20 has held as follows. "The facts of the appellant's case are identical with the facts of the above cited case of ITAT 'B' Bench, New Delhi. Therefore the payments made to M/s Vikram Electric Equipment Pvt. Ltd. as land consolidator were not for any services rendered but same were made for consolidation of land and surrendering of its rights in the land in favour of the appellant. M/s Vikram Electric .....

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in favour of the appellant company. In view of the above the payment made to M/s Vikram Electric Equipment Pvt. Ltd was genuine payment and same was related to purchase of land and surrendering of its rights in the land purchased by the appellant company. Therefore, the addition made by the ASSESSING OFFICER is deleted. Further, the provisions of section 40(a)(ia) are not attracted in this case as the appellant has not claimed any deduction for any expenses on account of payment to M/s Vikram E .....

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ed. Under the circumstances we uphold the order of the First Appellate Authority and dismiss this appeal of the Revenue. 6. ITA 3577/Del/2012: The facts of this case are brought out at para 3 of the Ld.CIT(A)'s order. Here also the First Appellate Authority granted part relief. Aggrieved the assessee has come up in appeal before us on the following grounds. "1. Whether the CIT(A) under the facts and circumstances of the case and in law was justified in deleting the addition fo ₹ 7 .....

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llate Authority at page 20 has held as follows. "The facts of the appellant's case are identical with the facts of the above cited case of ITAT 'B' Bench, New Delhi. Therefore the payments made to M/s Vikram Electric Equipment Pvt. Ltd. as land consolidator were not for any services rendered but same were made @ 2% for consolidation of land and surrendering of its rights in the land in favour of the appellant. M/s Vikram Electric Equipment Pvt. Ltd was acting as principle to pri .....

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