TaxTMI 
TaxTMI 
2018 (7) TMI 2208
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....lhi erred in fact and law in upholding the disallowance of interest of Rs. 13,20,445.00 claimed u/s 57 (iii) which act of the CIT(A) is contrary to the facts of the case and against provisions of law. 3. The Ld. CIT(A) failed to appreciate the nature of interest payment made of Rs. 13,20,445.00 as also the consequent receipt of interest of Rs. 12,00,240.00 while upholding the disallowance, which act of the Ld. CIT(A) is wrong both on facts and in law." 2. Ld. AR inviting attention to the assessment order submitted that in the year under consideration the assessee has received interest of Rs. 12,00,240/- from ERA Landmark, NOIDA against space booked in their upcoming project at Greater NOIDA. For acquiring the said property, the ....
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....ed. 4. Ld. Sr. DR relying upon the orders through conceding that there appears to be a confusion on facts, however, it was his request that the issue may be remanded to the A.O. for fresh consideration and not the CIT(A). The said request was not opposed by the Ld. AR and he agreed that it may be remanded. 5. I have heard the submissions and perused the material available on record. I find that on account of incorrect submission on fact by the assessee despite the fact that the Buyer Agreement was available before the A.O. the mistake has occurred. I also find that the specific clauses have been extracted in the written submissions before the CIT(A)., however the relevant facts appear to have been ignored while passing the order. In t....
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....in Clause A.2 of the agreement:- i. Discounted Cash Down Plan In this plan, the intended allottee gets a discount of Rs. 12,36,243.00 thereby reducing the sale price of the unit to Rs. 80,38,757.00 computed at Rs. 4,593.57 per sq. ft. ii. Construction Plan This plan is construction linked payment in installment plan comprising of a certain percentage of down payment and balance to be paid in installments as and when the construction reaches a certain stage of completion. iii. Cash Down Plan In this plan also, the intended buyer again makes a bullet payment as in case of Discounted Cash Down Plan. c. The building was projected to be completed by 30th September 2009 at the outset and be ready for occupation....
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.... g. The fact that the assessee was receiving interest from the Developers, it was construed that it attributed to delayed construction, which was an erroneous understanding / inference and misreading the terms of clause relating to assured return on allottee opting for the Cash Down Payment Plan. A reading of the Buyer's Agreement will reveal that there is no provision for the Developer paying interest to the allottee for delay in handing over possession. h. A copy of the Buyer's Agreement was submitted to the A.O. during the assessment proceedings. i. The assessee, opted for making Discounted Cash Down Payment to ensure earning interest and subsequently assured returns. j. If the intent of the assess....