TMI Blog2018 (5) TMI 2071X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT (A) and the submissions of both the parties and we do not find any infirmity in the order of the Ld. CIT (A). After examining the loose papers seized at the time of search and the assessee s premises, it was noted that the interest is paid on the post dated cheques only during the period of extension of post dated cheques and therefore he directed the assessing officer to recompute the interest on post dated cheques at the time of extension of the post dated cheques -CIT (A) directed to recalculate the interest on post dated cheques and 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal:- 1. On the facts and in the circumstances of the case and in law, the CIT(A) has erred in directing the AO to compute the interest on post dated cheques from the date after the six months of issue of such post dated cheques i.e. from the date cheques i.e. from the date of execution of sale-deed. 2. On the facts and in the circumstances of the case and in law the CIT(A) has erred in holding that additional payment made to the owners of the land is allowable as an expenses u/s 37 of the Act. 3. The order of the ld CIT(A) is erroneous and in not enable on facts and in law. 3. Brief facts culled out from the assessment order shows that search and seizure operations were carried out at the various premises of M/s BP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re farmers and these additional payments were over and above the sale consideration mentioned in the sale deed. The Ld. AO noted that above payments have been made much after the execution of the sale deed and ostensibly, without specifying the purpose and the assessee company thereby increased the cost of the land by the additional payments made. The Ld. assessing officer relying on the assessment order of the other group companies made the above addition as according to him it is nothing but a made up affairs and the payments made are not genuine and hence not admissible as a cost of land. 6. Consequently the assessment order under section 153A of the act was passed on 25/3/2013 determining the total taxable income of the assessee or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an expense under section 37 and additional payments made to other payments are not supported by any legal right over the land in similar payments made in cash to the owner of the land is confirmed as there are instances of not confirming the receipt by the few sellers. Therefore, he partly allowed the above ground. The revenue is in appeal before us. 8. The Ld. departmental representative relied upon the orders of the Ld. assessing officer and submitted that there is no justification for restricting the imputation of the interest only beyond 6 months. Therefore, he submitted that even for the 3 months period the interest is required to be taxed in the hands of the assessee and the order of the Ld. assessing officer deserves to be upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the lower authorities. On the issue of interest the issue is squarely covered in favour of the assessee in one of the group cases in case of M/s IAG promoters and developers private limited in ITA No. 1674/del/2013 and 1765/del/2013 for assessment year 2008 09 wherein the coordinate bench in order dated 31/10/2014 has held as under:- 5. We have heard the arguments of both the sides and perused relevant materials placed before us. At the outset, the ground raised by the revenue is misconceived because Ld. CIT (A) is not deleted the addition of ₹ 5, 06, 625 but has only directed to recalculate the interest. We have carefully gone through the order of the Ld. CIT (A) and the submissions of both the parties and we do not find a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound No. 1 of the appeal of the revenue. 12. Second ground of appeal is with respect to the disallowance of expenditure of ₹ 27 Lacs being amount paid to the various landowners over and above the actual price of the land. This issue is squarely covered in favour of the assessee by the decision of M/s westland developers private limited in ITA No. 1752/del/2013 dated 22/8/2014 for the assessment year 2006 07 is in that case such addition was deleted. The Ld. departmental representative could not controvert the above fact and further more that decision of the coordinate bench is further followed in several decisions by the coordinate bench wherein the similar issue was involved in the case of the group concerns. In view of this the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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