TMI Blog2013 (11) TMI 1723X X X X Extracts X X X X X X X X Extracts X X X X ..... mt. Ranu Jain and Shri A.K. Aggarwal, CAs. ORDER PER G.D.AGRAWAL, VP : These appeals by the Revenue are directed against the order of learned CIT(A)-III, New Delhi dated 28th March, 2013 for the AY 2005-06 2006-07. 2. In both these appeals, identical grounds have been raised which read as under:- 1. On the facts and in the circumstances of the case, the CIT(A) has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A(3). On appeal, learned CIT(A) deleted the addition with the following finding:- 6.2 As regards the issue of disallowance/addition under Section 40A(3) is concerned, it is seen from the records and evidences available that upto the Assessment Year 2005-06, closing work in progress of land to the tune of ₹ 24,70,27,553, has been shown which comprises of opening work in progress, purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince in the present case the amount given for purchase of land does not form part of Profit Loss Account and the same has not been claimed as expenditure in the year under consideration, therefore relying on ITAT s order delivered in appellant s sister concern namely Vansidhar Projects P.Ltd., I am of the considered view that the provisions of section 40A(3) would not apply to the facts of appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of learned CIT(A). The learned CIT(A) has not disputed the applicability of Section 40A(3) in respect of cash payment made by the assessee. However, any expenditure can be disallowed only when the deduction in respect of such expenditure is claimed by the assessee. In this case, admittedly, the assessee has not claimed the expenditure on purchase of land by debiting the same to the profit loss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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