2021 (3) TMI 350

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....)-25, Delhi is bad both in eyes of law and on facts. 2 That on the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals)-25, Delhi has erred in confirming the disallowance of Rs. 10, 00,000/- made by AO on account of cash payment made for purchase of land at Ghaziabad, U.P. invoking the provision of section 40A(3) of the Act ignoring the fact that land shown in 'non-current investment' in Audited Financial Statements. 3 That on the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals)-25, Delhi has erred in confirming the disallowance of Rs. 10,00,000/- made by AO on account of cash payments made against the purchase of land....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 1961 amounting to Rs. 20 lacs (Rs. 10 lcas out of Rs. 3.36 crores and Rs. 10 lacs out of Rs. 12.87 crores). The Assessing Officer also disallowed Rs. 2,88,072/- u/s 14A of the Act. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. AR submitted that the CIT(A) erred in confirming the disallowance of Rs. 10 lacs made by the assessee on account of cash payment towards purchase of land at Ghaziabad, UP under the provisions of Section 40A(3) of the Act thereby ignoring the fact that land is shown in non current investment in the audited financial statements and not claimed as expenditure in P & L account. The Ld. AR further submitted th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 40A(3) will be applicable along with Rule 6D (J). In-fact, both the Revenue Authorities have not disputed the identity of the sellers as well as the purchase /sale deed between the parties and the assessee, but whether the payments were bonafide and the consideration of a genuine transaction was properly disclose by the assessee during the assessment proceedings as well as the appellate proceedings is also not specified in both the Revenue Authorities orders. The submissions of the Ld. AR that the cash payments were made on Sunday's which is a non-banking day but the assessee from the records has not shown as to what was the necessity to make payment on Sundays. Thus, the Revenue Authorities as well as the assessee has not clearly stated t....