2024 (1) TMI 1070

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....ss objections were heard together, they are disposed of by this common order for the sake of convenience and brevity. 3. Grievances of the Revenue read as under: "1. That the Ld. CIT(A) has erred in law and on facts by deleting the addition made by AO without appreciating the fact that the addition was made by the A.O. correctly treating the interest income as income from other sources as assessee has not recognized the revenue during the year under consideration as per real estate Accounting Standards, (AS-9). 2. That the Ld. CIT(A) has erred in law and on facts by deleting the addition made by A.O. without appreciating the fact that the addition u/s 68 of the Act was made due to failure on part of assessee to submit the confirmation ....

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....k deposits was liable to be charged to Income tax as income from other sources. The Assessing Officer, accordingly, added Rs. 81,06,247/-. 8. Proceeding further, the Assessing Officer noticed that the assessee has received Rs. 1,69,48,50,000/- as long term borrowings from Shri Owais Usmani who happens to be a 100% share holder of the assessee company. Money was received against issue of compulsory convertible debentures of face value of Rs. 125/- each, at discounted price of Rs. 100/- each. 9. The assessee explained that Rs. 1,69,48,50,000/- is actually face value of debentures and the assessee has actually received Rs. 1,35,58,80,000/- out of which only Rs. 1,28,09,10,000/- has been received during the year under consideration. 10. The ....

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....rusal of the balance sheet show that the assessee was having inventories of Rs. 37.88 crores as on 31.03.2014 which was increased to Rs. 80.50 crores as on 31.03.2015. The assessee has purchased a land situated at GH-F 2, SDZ, Sector - 25, Jaypee Greens Sports City, Gautam Budh Nagar measuring 222.58 sq. yds. for construction of group housing duly approved by the Yamuna Expressway on 12.12.2012, which means that the business of the assessee commenced in F.Y. 2012-13. Therefore, the observation of the Assessing Officer that the assessee has not commenced its business is factually incorrect and on proper appreciation of facts, we decline to interfere with the findings of the ld. CIT(A). Ground No. 1 is dismissed. 20. In so far as deletion of....