Case Law Details
Home Developers Vs DCIT (ITAT Pune)
On perusal of the agreement, it was observed that the assessee paid Rs.36,09,000/- being compensation paid to land-owners, for allotting less than agreed constructed area, as per development agreement. The AO asked the assessee to submit the supporting documentary evidences viz., confirmation from the parties, books of accounts of their parties etc., in order to substantiate the genuineness of payment. The assessee furnished certain details and claimed that the payments made through banking channel. Not satisfied with the details so furnished and observing that the assessee furnished self-made vouchers and also tampered some of the documents. In the hue of aforementioned reasons, the AO invoked section 37 of the Act and made the addition of Rs.36,09,000/-.
On going through the finding of the ld.CIT(A), we find that the ld.CIT(A) has rightly appreciated that the Development Agreement, dated 22.02.2011 do not indicate any consideration. The assessee could not justify the payments made by filing confirmations of the parties. Mere statement that the transactions routed through banking channel does not absolve the assessee to claim deduction. In view of the aforesaid circumstances, we do not find any reason to deviate from the order of the ld.CIT(A).
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an appeal filed by the Assessee is directed against the order of ld. Commissioner of Income Tax(Appeals)-1, Pune dated 07.08.2019 for the A.Y.2013-14. The Assessee has raised the following grounds of appeal:
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