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TMI Blog2015 (10) TMI 1598X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld.CIT(A)- 2. The assessee is engaged in the business of Real Estate Development. 3. Revenue's appeal : ITA 816/Del/2011:- Ground no.1 is against deletion of disallowance of Rs. 1,51,70,941/- by the Ld.CIT(A). The disallowance was made u/s 40A(3) of the Income Tax Act, 1961. (the Act). Ground no.2 is against deletion made by the First Appellate Authority on account of deduction of purchase cost by the AO from that claimed by the assessee. 4. The Revenue appeal is on the issue whether the AO was right in charging notional interest. 5. We have heard Shri Pradeep Dinodia, along with Sh RK Kapoor, the Ld.Counsel for the assessee and Shri J.P.Chandraker, Ld.SR.DR on behalf of the Revenue. 6. We first take up the Revenue's appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld as follows: "I have considered the submissions of the assessee and findings of the AO in the assessment order. Regarding the computation of loss on sale of land, it is seen from the submissions made by the assessee and also from the observations of the AO that the purchase price of land, subject matter of sale, was Rs. 1,88,53,629/-. The AO has disregarded a sum of Rs. 19,32,269/- from the purchase price which represent the amount payable to the consolidator. There is no doubt that the assessee paid full price i.e. Rs. 1,88,53,629/- on purchase of impugned land which has been paid to the land owners or to the consolidator. The AO is not justified in reducing the cost of acquisition and hence making an addition to the profit on sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me interest which was not due or not collected". In the instant case, the addition was made by the AO on notional interest which was not in the existence. So, the first appellate authority as well as the Tribunal have rightly deleted. In the light of above discussion and by considering the totality of the facts and circumstances of the case, we find no reason to interfere with impugned orders passed by the Tribunal. The same are hereby sustained along with reasons mentioned therein. The answer to the substantial questions of law are in favour of the assessee and against the department. 12.1. Respectfully following the same we allow this ground of the assessee. In the result this appeal no. ITA 3483/Del/2012 is allowed. 13. The Revenue' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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