2025 (7) TMI 1803

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....3(3)/153A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 26.03.2013 by the Assessing Officer, ACIT, Central Circle-3 (Now Central Circle)-13, New Delhi (hereinafter referred to as 'ld. AO'). 2. Ground Nos. 1 and 2 raised by the assessee were stated to be not pressed by the ld AR at the time of hearing. The same is reckoned as a statement made from the bar and accordingly Ground Nos. 1 and 2 are hereby dismissed as not pressed. 3. Ground Nos. 3 and 4 raised by the assessee are challenging the confirmation of disallowance of Rs. 30 lakhs made u/s 40A(3) of the Act. 4. The assessee company was engaged in the business of development/ construction of building, homes, flats etc and accordingly undertook collaboration ....

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....used the material available on record. We find that the seized documents Annexure A-4, pages 86 to 119 represent agreement to sell dated 03.11.2009 entered into by the assessee with Smt Padmawati Mahajan for purchasing the property of D-95, Anand Niketan, New Delhi for Rs. 3.55 crores including Rs. 30 lakhs received from M/s. Emerald Homes Pvt. Ltd and later on before the completion of terms of deal with M/s. Emerald Homes Pvt. Ltd, the assessee company had taken over the said deal/property from Emerald Homes Pvt. Ltd and executed the agreement to sell dated 06.03.2009. Pursuant to the said agreement, the assessee company had reimbursed cash consideration of Rs. 30 lacs to M/s. Emerald Homes Pvt. Ltd in the same manner as was given by M/s. ....

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.... Drawn on 20,00,000/- 21.11.2006 064701 HDFC Bank Ltd., Vasant Vihar, New Delhi issued by M/s Emerald Homes Pvt Ltd 5,25,000/- 07.03.2009 Cash Given by M/s Emerald Homes Pvt Ltd 4,90,000/- 21.03.2009 Cash Given by M/s Emerald Homes Pvt Ltd 4,75,000/- 05.03.2009 Cash Given by M/s Emerald Homes Pvt Ltd 4,50,000/- 12.05.2009 Cash Given by M/s Emerald Homes Pvt Ltd 5,50,000/- 14.03.2009 Cash Given by M/s Emerald Homes Pvt Ltd 5,10,000/- 19.05.2009 Cash Given by M/s. Emerald Homes Pvt Ltd 30,00,000/- 05.10.2009 033874 Union Bank of India, Vasant Vihar, New Delhi 50,00,000/- 08.10.2009 077531 HDFC Bank Ltd., Vasant Vihar, New Delhi 40,00,000/- 24.10.2009 001211 The Saraswati Co-Op. Bank, Lajpat Nagar, 1,1....

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....understanding the fact that it was paid to M/s. Emerald Homes Pvt. Ltd that too at the insistence of Emerald Homes Pvt. Ltd. At the cost of repetition, M/s. Emerald Homes Pvt. Ltd had duly confirmed the entire transaction of receiving money from the assessee in cash. So, the payment of Rs. 30 lacs in cash by the assessee is directly traceable to the hands of the recipient and hence there is no loss to the exchequer in the form of tax evasion/ tax avoidance by either parties. The assessee company had shown cost of purchase of property at D-95, Anand Niketan, New Delhi under the head collaboration cost/ purchase in its financial statement and since, the site was under consideration/ development till 31.03.2010, the value of the same was refle....