Tribunal Upholds CIT(A)'s Orders on Post-Dated Cheques & Landowner Payments

The Tribunal affirmed the CIT(A)'s orders for the Assessment Year 2010-11, directing the AO to compute interest on post-dated cheques only beyond 6 months and allowing additional payments to landowners as expenses under section 37. The revenue's appeal was dismissed, emphasizing adherence to legal precedents and prior decisions in similar cases.

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Issues:
1. Computation of interest on post-dated cheques
2. Allowability of additional payments made to landowners as expenses under section 37

Analysis:
1. The appeal by the revenue challenged the CIT(A)'s order for the Assessment Year 2010-11. The assessment stemmed from search and seizure operations at various premises of a group concern, including the assessee. The issue revolved around the payment of part consideration for land purchases at the time of sale deed execution, with the balance paid through post-dated cheques, attracting interest. The AO made additions due to unaccounted interest on post-dated cheques. The CIT(A) directed the AO to compute interest based on a previous case's direction, leading to the appeal. The Tribunal cited a similar case where interest calculation was directed only beyond 6 months, upholding the CIT(A)'s decision and dismissing the appeal.

2. Another aspect involved additional payments made to landowners, over and above the sale consideration, post-sale deed execution. The AO treated these payments as non-genuine, increasing the land cost. The CIT(A), differing from a coordinate bench, allowed these payments as expenses under section 37 based on a prior decision. The Tribunal, following precedent, upheld the CIT(A)'s decision, directing the AO to delete the addition. The assessee's arguments, supported by previous cases, were deemed valid, leading to the dismissal of the revenue's appeal.

In conclusion, the Tribunal affirmed the CIT(A)'s orders on both issues, emphasizing adherence to legal precedents and prior decisions in similar cases. The revenue's appeal was dismissed, and the decisions were pronounced in open court on 07/05/2018.

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