9911796707
TMI Blog2017 (7) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case and in law the CIT(A) erred in rejecting appellant's contention that assessment order made by Assessing Officer was bad in law and void ab-initio on the ground-that it ought to have been made u/s 153C of the Income Tax Act, and not, as was done u/s 143(3) of the Income Tax Act. 2. That without prejudice, on the facts and circumstances of the case and in law, the CIT(A) erred in upholding the action of the Assessing Officer in relying upon the material seized in the case of search on M/s BPTP group of cases despite:- i) that such material had no nexus/relevance with the case of the appellant and, ii) that, the CIT(A) himself holding that such material did not belong to the appellant. 3. That on the facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) is erroneous and is not tenable on facts and in law. 3. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 3. At the time of hearing the Ld. AR has not pressed ground no. 1, 4 & 5 of the assessee's appeal; therefore, the same are dismissed. 4. The assessing officer analysed few seized material and concluded that assessee is paving unaccounted interest on PDCs given to the seller of land. He also relied upon bank accounts of five sellers of the land to BPTP Group where there is huge cash deposit. The assessee company belongs to the BPTP Group. The BPTP Ltd and its Group companies are engaged in the business of real estate. This group ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest paid. All these documents are part of Assessment Order. The Assessing officer held that it is well within its right to calculate the undisclosed expenditure of the assessee on rational basis. In the present case, this undisclosed expenditure is interest paid on PDCs based on the substantial number of seized document which clearly indicated the modus operandi of the group. Reliance was also placed on the judgement of Hon'ble Supreme Court in the case of H.M. Esufali H.M.Abdulali V/s Commissioner of Sales Tax, Madhya Pradesh 90 1TR 271 ( 1973 ). The A.O further held that the assessee paid interest in cash to the vendor(s) on the amount of PDCs @ 1.25% per month (15% per annum) outside its books of account. Thus, by applying the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , some finding on additional payment for the acquisition of land. The Ld. DR has also submitted that there is no finding which was given by the Assessing Officer that certain seized material belongs to Assessee Company. The CIT (A) further held that there is no evidence which proves that interest is paid from the date of sale to date 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) furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerns seized material had specific nexus with the assessee in the present case as was so held in the case of M/s. Westline Developers Pvt. Ltd. 7. The Ld. DR. submitted that the order in case of M/s. Westline Developers Pvt. Ltd. is not applicable in the present case as the said order was related to Section 147 of the Act 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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