TaxTMI 
TaxTMI 
2024 (3) TMI 304
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....97/-. 2. Whether, the Ld. CIT(A) has erred in allowing the appeal regarding disallowance u/s. 40(a)(ia) of the Income Tax Act of the interest payable and fit out charges received from buyers amounting to Rs. 4,69,31,575/-. 3. Whether the Ld. CIT(A) has erred in allowing the appeal regarding disallowance of amount paid towards assured return amounting to Rs. 29,31,312/-. 4. The appellant craves leave to add, amend, or reserving the right to amend, modify, add, or forego any ground(s) or appeal at any time before or during the hearing of this appeal. 2. Briefly stated facts are that assessee is engaged in the business of trading of Real Estate spaces. During the year under consideration, the assessee has traded of spaces of a semi cons....
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....before the AO, hence, AO treated Rs. 1,23,87,897/- on account of commission as bogus and added the same to the income of the assessee, 5.2 As regards, Ground No. 2 relating to addition of Rs. 4,69,31,575/- is concerned, AO observed that assessee has not deducted tax at source on interest of Rs. 4,69,31,575/- as shown in the balance sheet and to conceal these facts, the assessee has taken different stand at different point of time in order to escape from true transaction and assessee is squarely hit by the provisions of section 40(a)(ia) of the Act due to its manifest failure to comply with the mandate of the provisions of section 194A of the Act, therefore, AO disallowed the said expenditure and added back the same to the income of the ass....
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....any objection and the assessment was completed u/s. 143(3) of the Act. AO made enquiries from various persons by issuing notices u/s. 133(6) and obtained confirmations and documents without giving any basis of doing so, however in response to section 133(6) some of the buyers have stated that the space was booked through broker but did not pay brokerage to broker. Hence, Ld. CIT(A) observed that AO's conclusion that payment of commission to brokers bogus, is not correct appreciation of facts and drawing conclusion simply on the basis of solitary statement of Sh. Ravinder Yadav without conducting any further enquiry, is not sufficient to accept the finding of the AO. In view of above, in our considered opinion, the Ld. CIT(A) has rightly del....
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....rved that the challan for deposit of TDs was on record before AO but the AO did not examine this. Therefore, the Ld. CIT(A) was right observing that TDS on interest payable of Rs. 1,06,984/- was deducted on deposited by the assessee, hence, he rightly deleted the disallowance of Rs. 1,06,984/- and regarding fit out charges, it is noted that relevant ledger account at the name of the person from whom fit out charges were received, have been submitted before AO. In the remand proceeding also confirmation from the parties, address were submitted. The AO did not make any adverse observation about the liability on account of fit out charges. Hence, Ld. CIT(A) observed that fit out charges received is part of the agreement signed with the custome....