2020 (5) TMI 431

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....e 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 that such material did not belong to the appellant. 3. That on the facts and circum....

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....espect to disallowance u/s 40A(3) of the Act. 5. The facts of the case shows that assessee is a company who filed return of income on 02.11.2006 for Rs. 207090/-. Subsequently, notice u/s 143(2) was issued on 23.11.2007. The assessee is engaged in the business of real estate deriving income from acquiring land and transferring it to other company in pursuance of collaboration agreement. The assessment u/s 143(3) was made by the ld Assessing Officer on 31.12.2008 at Rs. 1515832/-. The ld Assessing Officer has made an addition of Rs. 859495/- u/s 40A(3) being 20% of the amount paid of Rs. 4297469/- and the addition on account of additional payments made of Rs. 386248/- for purchase of land. 6. The assessee aggrieved with the order of th....

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....progress at the time of purchase of land which was reimbursed. The fact shows that assessee was acquiring the land from the various farmers by paying cash to them and debiting it to the capital work in progress account. This sum was not claimed as an "expenditure‟ in the profit and loss account. Therefore, there was no question of claiming deduction of this sum. The land was acquired on behalf of the other company who paid the assessee through account payee cheque. Such sum was credited in the capital work in progress account. The whole transaction of purchase of land as well as transfer to the sister concern was not routed through profit and loss account but were shown in the balance sheet. On these facts, coordinate bench held that ....