TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 434
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....onfirming the disallowance of Rs. 1,85,36,371/- under section 40(a)(ia) of the Act, on the facts and circumstances of the case. 4. Disallowance of 57,57,004/- a) The learned CIT(A) failed to appreciate that the interest paid of Rs. 57,54,004/- to banks ought not to have been disallowed, since there was no requirement to make TDS on interest payments to banks, on the facts and circumstances of the case. b) The learned CIT(A) failed to appreciate that the interest paid of Rs. 57,54,004/-to banks, was the cumulative interest of the earlier years and was claimed as an expenditure upon completion of the project, which has been affirmed by the assessing officer in the remand report, and no disallowance was required to be sustained, on the facts and circumstances of the case. 5. Disallowance of Rs. 1,27,82,367/- a) The learned CIT(A) failed to appreciate that the interest paid of Rs. 1,27,82,367/- to financial institutions, was the cumulative interest of the earlier years and was claimed as an expenditure upon completion of the project, which has been affirmed by the assessing officer in the remand report, and no disallowance was required to be sustained, on the facts and c....
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....ccordance with law and further are not discernible from the order and hence deserves to be cancelled on the facts and circumstances of the case. 10. The Appellant craves leave to add, alter, amend, substitute, change and delete any of the grounds of appeal. 11. For the above and other grounds that may be urged at the time of hearing of the appeal, the Appellant prays that the appeal may be allowed and justice rendered." 2.1 The assessee has filed a petition for admission of additional grounds. 3. We have heard the both the parties on admission of additional grounds. In our opinion, all the facts are already on record and there is no necessity of investigation of any fresh facts for the purpose of adjudication of above ground. Accordingly, by placing reliance on the judgement of Hon'ble Supreme Court in the case of NTPC Vs. CIT 229 ITR 383 (SC) we inclined to admit the additional grounds for the purpose of adjudication as there was no investigation of any fresh facts otherwise on record and the action of the assessee is bonafide. 4. First, we will deal with the additional ground no.(c) which reads as follows: c) "There is no allegation in the reasons recorded that the es....
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....lled Panjos Gardens on completed contract basis. This was due to the reason that the project was substantially complete during the year ended 31.3.2007 and all the flats were also registered during that period. All costs incurred upto the date of completion were carried forward as Work in Progress and was disclosed under Current assets in the Balance Sheet of the Company. 4.5 He submitted that during the year ended 31st March 2007, the company had also under taken projects titled Panjos Stadia and Panjos Serene. The Estimated Cost of the Project is Rs. 893,42,631/- and Rs. 768,15,566/-. The below mentioned table shows the Ratio of Costs incurred and estimated cost of construction. Details Panjos Stadia Panjos Serene Cost incurred upto 31.3.2007 18557544 18559843 Estimated Construction value 89342631 76815566 Percentage 21% 24% 4.6 He submitted that during the year ended 31st March 2007, only the preliminary structural work such as laying of columns and footings were in progress and no substantial costs were incurred in respect of the Project Panjos Stadia. In respect of the Project Panjos Serene - laying of foundation was completed and structural work was commenced.....
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....(Kar) 5. On the other hand, ld. D.R. submitted that the ld. AO has recorded that assessee has not duly deducted the TDS u/s 40(a)(ia) of the Act. As such, he reopened the assessment by validly issuing notice u/s 148 of the Act. Same to be upheld. 6. We have heard the rival submissions and perused the materials available on record. We have carefully gone through the reasons recorded by ld. AO u/s 147 of the Act, which has been reproduced in the earlier para of this order. In this case, originally assessment has been completed u/s 143(3) of the Act on 23.12.2009 and thereafter notice u/s 148 of the Act has been issued to the assessee on 14.02.2014. The first proviso to section 147 of the Act, which is very relevant is reproduced herein below: "Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response t....