TaxTMI 
TaxTMI 
2015 (2) TMI 1255
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....at The assessee company belongs to the BPTP Group. The BPTP Ltd and its Group companies are engaged in the business of real estate. A search & seizure operation was carried out on BPTP Ltd and some of its group companies on 15-11-2007, certain incriminating documents were found and seized. From perusal of these documents it was revealed that BPTP group companies had purchased huge tacts of land in different villages of Faridabad. It was also noticed from the seized documents that the group was following a business model as a part of which only part payments of the sale considerations in respect of lands purchased were paid at the time of execution of sale deed and the payment of balance sale consideration was invariably made through post da....
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..... 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 date of PDCs are extended, the recipient will definitely ask and settle for....
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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, as six months is t....