TMI Blog2017 (7) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... Westline Developer Pvt. Ltd.. The CIT (A) has rightly made observations that there is concrete evidence in form of seized material to show that interest is paid and received by seller on the extension of PDCs while analysing the seized documents. The CIT(A)’s order is upheld. - I.T.A .No. 1366/DEL/2013 And I.T.A .No. 1744/DEL/2013 - - - Dated:- 15-2-2017 - SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SMT SUCHITRA KAMBLE, JUDICIAL MEMBER For The Appellant : Sh. V.S. Rastogi, AR For The Respondent : Sh. Deepak Garg, Sr. DR ORDER PER SUCHITRA KAMBLE, JM These appeals are filed against the order dated 18.12.2012 passed by the CIT (A)-XXXIII, by the assessee as well as by the Revenue. 2. The grounds of appeal are as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by independent evidence. 3.2 That without prejudice the CIT(A) erred in upholding the addition of interest for the period for which PDC's were extended. 3.3 That without prejudice the CIT(A) erred in not quantifying the addition and instead giving ambiguous directions to compute the interest after six months from the date of sale. 4. That the orders passed by the Assessing Officer and Commissioner of Income Tax (Appeals)-XXXIII, New Delhi are bad in law and void abinitio. 5. The appellant craves permission to add, amend, alter or vary all or any grounds of appeal on or before the date of hearing of the appeal. I.T.A. No. 1366/DEL/2013 1 On the facts and in the circumstances of the case, the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had purchased huge tacts of land in different villages of Faridabad such as Kherikhurd, Kherikalan, Budena, Bhatola, etc. The A.O noticed from the seized documents that the group was following a business model as a part of which only part payments of the sale considerations in respect of lands purchased were paid at the time of execution of sale deed and the payment of balance sale consideration was invariably made through post dated cheques (PDCs) and for the intervening period i.e. period between the date of sale deed and the date of encashment of PDC, interest was paid in cash to the vendors of the land by the vendee company on monthly basis @ 1.25% p.m. on the amount of PDC. During the course of post search enquiries, it was noticed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,21,87.500 11-11-2006 5 ₹ 7,61,719/- Surendri 13-06-2006 1,21.87,500 11-11-2006 5 ₹ 7,61,719/- Azadbati 31-05-2006 54,63,333 08-02-2007 8 ₹ 5,46,333/- Netrapal 31-05-2006 54,63,333 05-02-2007 8 ₹ 5,46,333/- Bed Pal 31-05-2006 54,63,333 05-02-2007 8 ₹ 5,46,333/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of encashment of post dated cheques. However there is concrete evidence in form of seized material to show that interest is paid and received by seller on the extension of PDCs while analyzing the seized document. Therefore in CIT(A) s opinion wherever the dates of PDCs are extended interest is paid at 15% per annum in cash out of books of accounts. The same is evident from the seized material. The CIT(A) further held that:- If it is not possible to work out the extension of PDCs in each case then A.O. is directed to recomputed interest on PDCs after six months from date of issue of PDCs i.e. date of sale, as s i x months i s taken as reasonable period for giving PDC as per sale deed. This view i s formed on the basis the stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct only and not to that of Section 143(3) of the Act as in the present case. The Ld. DR. however submitted that the interest is paid in cash to the group companies. 8. The Ld. AR in his rejoinder submitted that no interest was received by the assessee and there is no material found. 9. We have heard both the parties and perused all the documents. The CIT (A) clearly mentioned that the assessment order nowhere mentions any part of seized material belonged to Assessee Company, but the seized material is that of associates/group companies of BPTP Group. The assessee is also group company of the BPTP Group. This fact was never denied by the assessee at any point of time. The reliance by the Ld. AR on the order of M/s. Westline Developers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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