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TMI Blog2016 (6) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... s carried out in Rajdarbar Group of cases on 31.07.2008. During search operation, certain documents were seized which allegedly belonged to the assessee company. The case of the assessee company was transferred to Central Circle - 12 from Central Circle-5, New Delhi under section 127 of the Income Tax Act, 1961 by the orders of Ld. Commissioner of Income Tax (Central)-I, Delhi vide F. No. CIT(C)- 1/Del/Centralisation/1/2009-10/2888 dated 25.03.2010. 3. Notice u/s 142(1) of Income Tax Act, 1961 dated 02.08.2010 was issued to the assessee company, requiring it to file the return for the Assessment Year 2009-10. Return of income for the Assessment Year 2009-10 was filed by the assessee on 10.09.2010 declaring income of Rs. 19,09,200/-. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India A/c no. 307801010917171 on 05/02/2008 and same day the amount was transferred to sister concern M/s Global Realty Venture Ltd. (GRVL) and this company transferred the same amount on the very same day to another sister concern M/s Narendra Impex Ltd., which used the amount against payment made to NBCC Ltd. as advance against property at NBCC Plaza, New Delhi. No interest was charged from M/s GRVL by the assessee and AO was of the opinion that the assessee had diverted the debenture amount of Rs. 100 crore received from the foreign company to M/s GRVL without interest but had, however, paid interest of Rs. 4,18,63,014/- to the foreign company. The assessee had claimed the above payment as advances to contractor & suppliers. The AO hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors ignoring the fact that the sums on which interest expenditure was incurred were used for commercial expediency and were raised at a very low rate of interest. 5. Without prejudice to the other grounds of appeal, the Ld. CIT (A) has erred on facts and in law in confirming the disallowance of capitalization of interest of Rs. 4,18,63,0147- even if assuming the funds received from the overseas investors were not directly applied to the hotel project as the appellant had made substantial investment of interest free fund in the hotel project before the foreign funding was received. 7. The Ld. AR submitted that this Tribunal was pleased to quash the assessment order passed u/s 143 (3)/153C for AY 2008-09. Copy of this order is placed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gislative intent would be impermissible. He relied on the decision of the Hon'ble Apex Court in the case of Keshavji Raviji & Co. Vs CIT 1883 ITR 1 (SC) for this proposition. The learned Departmental Representative also argued that there was no scope for importing into the statute words which were not there. He relied on the case of Smt. Taralata Shyam & Ors vs C.I.T. 108 ITR 345 (SC) for the same. The learned Departmental Representative also relied on the case of CIT vs Anil Kumar Bhatia 24 taxmann.com 98 (Delhi) for the proposition that the provisions of section 153C are not automatic and they can be invoked only if certain conditions were fulfilled. 11. We have heard the rival submissions and carefully perused the records. We are in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to para 9 of the Assessment Order which states that it has been passed with the prior approval of the Addl. CIT Central Range-Ill, New Delhi vide his letter dated 28th December, 2010. He submits that this was the prior approval that was required, in terms of Section 153 D of the Act, to initiate proceedings under Section 153 C of the Act. 5. The learned Counsel for the Revenue states that he needs some time to examine this aspect. At his request list on 29th September, 2015." 3. The Court is today informed that the submission of the learned counsel for the Assessee made on the previous occasion is correct. 4. The point involved in the resent appeal stands covered against the Revenue by the order passed by this Court on 14th August ..... X X X X Extracts X X X X X X X X Extracts X X X X
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