TaxTMI 
TaxTMI 
2015 (6) TMI 558
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2007-08. 1.1. As these appeals belong to the same group, for the sake of convenience they are heard together and are disposed of by way of this consolidated order. 2. First let us take ITA no.4351/Del/12 pertaining to the AY 2006-07. The facts are brought out at para 4 of the Ld.CIT(A)'s order which are extracted for ready reference. "The brief facts are that the appellant filed its return of income declaring loss of Rs. 91,70,837/- and AO had completed the assessment u/s 143(3) at an income of Rs. 1,41,44,619/-. In the assessment order AO has mentioned that Appellant has not started its business in the relevant year as purchase of land has been declared as investment and not stock in trade. During the year Appellant has received Un....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he nature of commission and therefore liable for deduction of TDS. Further ASSESSING OFFICER has held that amount payable to M/s Vikram is a bogus creditor. Therefore, said amount of Rs. 1,40,66,6281- has been disallowed by AO by treating it as bogus creditor and also holding that Appellant has contravene TDS Provisions." 3. On appeal the First Appellate Authority granted part relief. Aggrieved the Revenue is in appeal before us on the following grounds. "1. Whether the CIT(A) under the facts and circumstances of the case and in law was justified in allowing the business loss claimed by the assessee amounting to Rs. 91,75,357/- and disallowed by the AO treating the same as pre-operative expenditure related to investments? 2. Whether in t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot an agent. Therefore, provision of section 194H are not attracted in the case of appellant. The clause 3.2 of the MOU entered into between the appellant and M/s Vikram Electric Equipment Pvt. Ltd clearly show that M/s Vikram Electric Equipment Pvt. Ltd was working on principal to principal basis and the amount paid to M/s Vikram Electric Equipment Pvt. Ltd was for consolidation of 27 acres of land and surrendering of its rights in favour of the appellant company. In view of the above the payment made to M/s Vikram Electric Equipment Pvt. Ltd was genuine payment and same was related to purchase of land and surrendering of its rights in the land purchased by the appellant company. Therefore, the addition made by the ASSESSING OFFICER is de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssee craves leave, to add, alter or amend any ground of appeal raised above at the time of the hearing." 7. After hearing rival contentions we find that the First Appellate Authority at page 20 has held as follows. "The facts of the appellant's case are identical with the facts of the above cited case of ITAT 'B' Bench, New Delhi. Therefore the payments made to M/s Vikram Electric Equipment Pvt. Ltd. as land consolidator were not for any services rendered but same were made @ 2% for consolidation of land and surrendering of its rights in the land in favour of the appellant. M/s Vikram Electric Equipment Pvt. Ltd was acting as principle to principle basis and not an agent. Therefore, provision of section 194 H are not attracted....