TaxTMI 
TaxTMI 
2015 (2) TMI 1256
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....e is engaged in the business of development, construction and marketing of Real Estate in the commercial and residential sector. Search and seizure operation was carried out on BPTP group companies on 15.11.2007 the assessee company also belongs to BPTP group. On the basis of certain documents seized during the course of search and seizure and also on the basis of post search enquiries, it was established that the group companies of BPTP were following a business model as a part of which only part payments of the sale consideration in respect of the land purchased were paid at the time of execution of the sale deed and the payments of balance sale consideration were made though post dated cheques (PDCs) and for the intervening period, inter....
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....ing. In case of claim, the receiver will not sign the voucher as recipient. Amounts are specific and calculation is 15% per annum. Therefore, Ld. AR without conceding that the interest is paid on PDCs has taken the stand that in none of the seized material, i.e. even in receipt seized, the interest is from date of issue of PDCs. Now issue arises whether interest on PDCs are paid from date of issue or for extension of PDCs. Documents discussed above where there is clear evidence of receipt of interest is for extension of period of PDCs. Ld AR's arguments that calculation of interest on PDCs has been considered while entering into agreements holds some logic. But when dates of PDCs are extended, the recipient will definitely ask and settl....
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....romoters Ltd. or in stray case by some other companies. Assessing Officer has applied the case of Eusuf Ali for applying interest on PDCs for all companies of BPTP Group for all Assessment Year under consideration. Ld AR has tried to differentiate the above cited case on facts. In my view, as interest payment on extension of period of PDCs are established on numerous seized documents. A trend is established for the group as the overall management is controlled by one person Sh,. Kabul Chawla and activities of all companies are interrelated. If it is not possible to work out the extension of PDCs in each case then A.O. is directed to recomputed interest on PDCs after six months from date of issue of PDCs i.e. date of sale, six months is ta....
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.... of interest on PDCs paid out of books of account is concerned, it is was submitted by the Ld. Counsel of the assessee that this was the interest calculated @ 15% p.m. on PDCs from the date of issue (sale deed) to the date of encashment. We find that CIT(A) held in para 5.4 at page 17 of his order that "If it is not possible to work out the extension of PDCs in each case then A. O. is directed to recomputed interest on P DCs after six months from date of issue of PDCs i.e. date of sale, as six months is taken as reasonable period for giving PDC as per sale deed". Ld. Counsel of the assessee further submitted that since the PDCs were encashed in less than six months from the date of issue, entire interest of Rs. 26,69,785/- was deleted in pu....