TMI Blog2015 (2) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Parwinder Kaur, Sr.DR For the Respondent : V. S. Rastogi, AR ORDER T. S. Kapoor (Accountant Member) This is Revenue s appeal against the order of Ld. CIT(A) dated 23.01.2013. The only effective ground taken by Revenue is the grievance with the action of Ld. CIT(A) by which he had deleted the addition of ₹ 29,74,652/- made by A.O. on account of interest paid outside books of accounts. 2. The brief facts as noted in the assessment order are that the assessee is engaged in the business of development, construction and marketing of Real Estate in the commercial and residential sector. Search and seizure operation was carried out on BPTP group companies on 15.11.2007 the assessee company also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion: - Learned AR has maintained all along that interest is not paid as all the receipts are only memorandum only. Analysis of these above seized document reveals that these seized documents definitely proves that interest is paid on PDCs. Various voucher in seized documents conclusively proves that the recipient has signed on voucher for receipt of the interest. Ld AR's contention that these are only working of interest claimed by seller for putting up before senior management does not appear to be convincing. In case of claim, the receiver will not sign the voucher as recipient. Amounts are specific and calculation is 15% per annum. Therefore, Ld. AR without conceding that the interest is paid on PDCs has taken the stand that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant company as evidence is found in respect of various companies of BPTP and some seized paper could not be related to specific company. Therefore, it is proper to apply this formula for all companies under the common management of BPTP Group, head by Shri Kabul Chawla. All these companies are closely linked. Some companies purchase land and transfer the same to M/s BPTP Ltd, or Countrywide Promoters (P) Ltd. for Housing or commercial projects are ultimately developed and sold by M/s BPTP Ltd and Countrywide Promoters Ltd. or in stray case by some other companies. Assessing Officer has applied the case of Eusuf Ali for applying interest on PDCs for all companies of BPTP Group for all Assessment Year under consideration. Ld AR has trie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73-74 of the paper book. 4. Ld. D.R. fairly conceded that the matter is covered in favour of assessee. 5. We have heard rival parties and have gone through the material placed on record. We find that similar issue arose in the case of ISG Estate (P) Ltd. which is also a group company of BPTP and findings of the Tribunal as contained vide paras 14-17 are reproduced below: REVENUE'S APPEAL 14. As regards ground No.1 raised by the Revenue relating to deletion of addition of ₹ 26,69,785/- made by the AO on account of interest on PDCs paid out of books of account is concerned, it is was submitted by the Ld. Counsel of the assessee that this was the interest calculated @ 15% p.m. on PDCs from the date of issue (sale dee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the assessee, we find considerable cogency in the contention of the Id. Counsel of the assessee that the issue raised in ground no. 1 raised in the Revenue's Appeal is squarely covered by the Order dated 31.10.2014 of the ITAT, Delhi 'C' Bench passed in ITA No. 1756/Del/2013 (A.Y. 2008-09) in the case of M/s IAG Promoter Developers (P) Ltd. vs. ACIT wherein the Tribunal held vide para no. 3 at page 5 as under:- The ClT(A) directed to recalculate the interest on PDCs and there was a sound logic for such direction. His direction is based on material found and seized at the time of search. In view of the above, we do not find any justification to interfere with the order of learned ClT(A) in this regard and accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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