TaxTMI 
TaxTMI 
2015 (5) TMI 904
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....e of hearing before us. In vie o above, grounds No.1, 2, 6 & 7 are dismissed as not pressed. 2. Ld. A.R. has filed a synopsis explaining the facts and circumstances of the case and submitted that the case of the assessee is covered in its favour by the order of various benches of the Tribunal in the case of group companies of assessee itself. The Ld. A.R. explained the facts of the case and submitted that assessee was engaged in the business of development of land and it had been acquiring land on behalf of another group company. During the year under consideration, the assessee had made payments for purchase of land which was duly reimbursed by the company on whose behalf land was purchased. It was submitted that A.O. had made additions....
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....e department has taken in its grounds of appeal vide ground No.2. Explaining the facts of the case, Ld. A.R. submitted that the assessee is part of group companies of BPTP and was engaged in the business of development of land. It was submitted that the assessee had made payment for purchase of land on behalf of M/s. Countrywide Promoters Pvt. Ltd. in view of collaboration agreement entered into between these two companies entered into on 15th Sep., 2004. It was submitted that vide this agreement, the land was to be purchased on behalf of M/s. Countrywide Promoters Pvt. Ltd. and the assessee was to be remunerated by an amount of Rs. 25,000/- per acre for the total land purchased on behalf of the said company. Ld. A.R. in this respect filed ....
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....re a copy of such order was placed. Our specific attention was invited to para 10.10 at page 58 of such paper book and in view of the above, it was submitted that the matter is covered in favour of assessee. Vide ground No.5, the assessee has challenged the addition sustained by Ld. CIT(A) amounting to Rs. 55,000/- as income from other sources. Ld. A.R. submitted that the addition was sustained without confronting the appellant or any of the parties and submitted that merely on the basis of suspicion, the addition cannot be sustained. 4. Ld. D.R. on the other hand heavily relied upon the orders of authorities below and in respect of revenue's appeal, he submitted that Ld. CIT(A) has wrongly deleted the addition of Rs. 5.36 lacs which the....
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....he facts of the present case the material issue is that the' said expenditure was never claimed as assessee's business expenditure the occasion to make a disallowance of the same does not arise. On this fact there is no dispute as admittedly the expenditure was not claimed as an expense by the assessee and consequently has not been routed through its P&L a/c. In the circumstances, the occasion to make an addition of the same by way of a disallowance in these peculiar facts and circumstances of the case does not arise. The reasoning and finding given while considering the arguments qua Ground No-4 would fully apply here also. The difference that here the entire amount is added U/S 37 as opposed to part of the expenditure disallowed u....
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....ur of assessee vide Tribunal order dated 31.10.2014 placed at paper book pages 56-57. The relevant findings of Tribunal are contained in para 10.10 at pages 56-57 are reproduced below: 10.10. We have also taken ourselves through the judgement of the Jurisdictional High Court in the case of CIT vs Industrial Engineering Projects Pvt. Ltd. (cited supra) which has been relied upon before us for the proposition that reimbursement of expenses cannot be treated to be a Revenue receipt. How the judgement of the Apex Court in Tuticorin Alkali Chemicals & Fertilizers is applicable to the facts of the present case has not been set out in the order of the authorities nor has the Ld, DR been able to address the applicability of the said judgement to th....
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.... the same is dismissed as not pressed. 11. Now, coming to Revenue's appeal, we have already decided ground No.2 while adjudicating assessee's appeal. So far as ground No.1 is concerned, the same is covered in favour of assessee vide Tribunal order dated 31.10.2014 wherein under similar set of circumstances, in the case of group company namely M/s. IAG Promoters and Developers (P) Ltd., the Tribunal has allowed relief to the assessee. The relevant findings of the tribunal are contained in para 5 placed at paper book pages 66-67 of the paper book, which is reproduced below: "5. We have heard the arguments of both the sides and perused relevant material placed before us. At the outset, the ground raised by the Revenue is misconceived bec....