TaxTMI 
TaxTMI 
2017 (7) TMI 803
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....OF APPEAL 1. That on the facts and circumstances of the case and in law the CIT(A) erred in rejecting appellant's contention that assessment order made by Assessing Officer was bad in law and void ab-initio on the ground-that it ought to have been made u/s 153C of the Income Tax Act, and not, as was done u/s 143(3) of the Income Tax Act. 2. That without prejudice, on the facts and circumstances of the case and in law, the CIT(A) erred in upholding the action of the Assessing Officer in relying upon the material seized in the case of search on M/s BPTP group of cases despite:- i) that such material had no nexus/relevance with the case of the appellant and, ii) that, the CIT(A) himself holding ....
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....of total addition of Rs. 48,01,436/-,made by the Assessing Officer on account of interest on PDCs paid out of books of account. 2. The order of the CIT(A) is erroneous and is not tenable on facts and in law. 3. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 3. At the time of hearing the Ld. AR has not pressed ground no. 1, 4 & 5 of the assessee's appeal; therefore, the same are dismissed. 4. The assessing officer analysed few seized material and concluded that assessee is paving unaccounted interest on PDCs given to the seller of land. He also relied upon bank accounts of five sellers of the land to BPTP Group where there i....
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....s not accounted for by it in it's books of accounts. The Assessing Officer relied upon various documents seized from the premise of BPTP Group in support of interest paid. All these documents are part of Assessment Order. The Assessing officer held that it is well within its right to calculate the undisclosed expenditure of the assessee on rational basis. In the present case, this undisclosed expenditure is interest paid on PDCs based on the substantial number of seized document which clearly indicated the modus operandi of the group. Reliance was also placed on the judgement of Hon'ble Supreme Court in the case of H.M. Esufali H.M.Abdulali V/s Commissioner of Sales Tax, Madhya Pradesh 90 1TR 271 ( 1973 ). The A.O further held that the ....
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.... the seized material belong to assessee company. The CIT (A) further observed that the assessee company is one of the group companies of BPTC group and material seized from BPTP Ltd. and other associates company has shown some trend of unaccounted expenditure in form of PDC interest, some finding on additional payment for the acquisition of land. The Ld. DR has also submitted that there is no finding which was given by the Assessing Officer that certain seized material belongs to Assessee Company. The CIT (A) further held that there is no evidence which proves that interest is paid from the date of sale to date of encashment of post dated cheques. However there is concrete evidence in form of seized material to show that interest is paid an....
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....e as was utilized for taking action u/s 147 and also for making assessment in the case of M/s. Westline Developers Pvt. Ltd. This is evident from the reasons recorded u/s 148(2) and the assessment order, where similar material is referred to. The Ld. AR further submitted that none of the concerns seized material had specific nexus with the assessee in the present case as was so held in the case of M/s. Westline Developers Pvt. Ltd. 7. The Ld. DR. submitted that the order in case of M/s. Westline Developers Pvt. Ltd. is not applicable in the present case as the said order was related to Section 147 of the Act only and not to that of Section 143(3) of the Act as in the present case. The Ld. DR. however submitted that the interest is paid i....