TMI Blog2012 (12) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... ances paid to the land owners for purchasing the land have not resulted in any stock in trade/work in progress for the year under consideration, therefore, on that particular date, it would not qualify for disallowance as expenses or payment within the meaning of Section 40A(1) read with Section 40A(3) - in such a situation, we are in agreement with the argument of the learned counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority, Delhi. The only ground argued by Mrs.Sushma Singh, learned CIT-DR is that on the facts and in the circumstances and in law, the learned CIT(A) erred in deleting the disallowance of ₹ 38,40,000/- made u/s 40A(3) of the Act. It was submitted that the assessee made the payment in cash which was to be made through cheque, therefore, there is a contravention to the provisions of Section 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions and perused the material available on record. The facts in brief are that the assessee company gave advances for purchase of agricultural land in District Panchkula amounting to ₹ 9,44,87,748/-, out of which, ₹ 7,52,87,748/- were paid through account payee cheque and remaining amount of ₹ 1,92,00,000/- were paid in cash to various farmers from whom agricultural land was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 9,44,87,748/- was shown as loans and advances in Schedule-II under the head current assets, loans and advances and there was no stock in trade either appearing in the balance sheet or profit and loss account as on 31.3.2007, meaning thereby, advances paid to the land owners for purchasing the land have not resulted in any stock in trade/work in progress for the year under consideration, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be treated as part of work in progress/stock in trade, it will be decided in accordance with law. Meaning thereby, the relief has been granted with the rider. In such a situation, we find no infirmity in the conclusion drawn in the impugned order, consequently, it is affirmed. Finally, the appeal of the Revenue is dismissed. Decision pronounced in the open Court on 7th December, 2012. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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