2015 (5) TMI 384

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....961. These grounds were not pressed at the time of hearing before us. Accordingly, the same are rejected as such. 3. Ground Nos.3 & 4 of the assessee's appeal read as under:- "3. That on the facts and circumstances of the case and in law the CIT(A) erred in not accepting the appellant's contention that Additional Payments having not been claimed as deduction by appellant, no disallowance could have been made in the hands of the appellant. 3.1 That without prejudice the CIT(A) erred in upholding the disallowance of additional payments made to the recipients who were not the owners of land and to the payment made in cash. 3.2 That without prejudice the CIT(A) erred in not himself quantifying the addition to be made. 4. ....

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.... additional payment on the ground that the genuineness of the additional payment is not established. Accordingly, the total additional payment of Rs. 13,06,377/- was disallowed. He also disallowed the sum of Rs. 4,59,999/- under Section 40A(3). On appeal, learned CIT(A) sustained the disallowance under Section 40A(3). However, in respect of additional payment to the owner of the land, he partly allowed the assessee's appeal with the following direction:- "In view of the above additional payment made to the owner of the land or to his brother, father, sons & their spouses, who have got some legal claim over such land by way of account payee cheque is hereby allowed as an expense u/s 37 and additional payment made to other payments are....

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....ed. He, therefore, submitted that the order of Assessing Officer should be sustained. 9. We have carefully considered the submissions of both the sides and perused relevant material placed before us. The assessee has produced the collaboration agreement before the Assessing Officer and has submitted as under:- "Based on the aforesaid Agreement the assessee purchased land for which the (M/s Countrywide Promoters Pvt.Ltd.) has reimbursed all costs and expenses with respect to the acquisition of the said land and also in conformity with the Collaboration Agreement the assessee has received fees calculated @ Rs. 35,000/- per acre, which is duly credited to the Profit and Loss Account as the income." 10. The above facts stated by the le....