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TMI Blog2020 (5) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee relate to the following issues:- (a) Addition of outstanding liabilities u/s 68 of the Act (b) Addition of loans taken from directors u/s 68 of the Act. (c) Addition of Advances received on sale of sites u/s 68 of the Act. (d) Charging of interest u/s 234B of the Act. 2. The assessee is engaged in the business of plotting and selling of housing sites. 3. The first issue relates to the addition of outstanding liabilities made u/s 68 of the Act. The AO noticed that the assessee has purchased lands from certain persons, but was showing a sum of Rs. 2,99,20,000/- as still payable to the sellers of land as on 31.3.2012. The break-up details of outstanding amount was given by AO as under:- (a) Mrs. Sharadamma - 55,00,000 (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e witnesses Rs. 22,87,500 Rs. 97,87,500 The Ld A.R submitted that the two demand drafts mentioned as item (a) and (b) has not been encashed by the sellers of land and hence the assessee has cancelled the same. The aggregate amount of both demand drafts is Rs. 35.00 lakhs. Further cheque bearing no.000064 mentioned in item (d) amounting to Rs. 20.00 lakhs has been encashed only on 22.05.2012. Accordingly the aggregate amount payable to Mrs. Shradamma was Rs. 55.00 lakhs (Rs. 35.00 plus Rs. 20.00) as on 31.03.2012. 5. With regard to Mr. Kempa Hanumaiah, the Ld A.R submitted that the land was purchased by the assessee from the above said person on 17.10.2011 by paying post dated cheques, which are mentioned in the payment s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tails. We have noticed that the assessing officer has given details of outstanding creditors to the tune of Rs. 2,50,95,000/-, while the amount of sundry creditors is mentioned initially as Rs. 2,99,20,000/-. The addition has been made by taking the figure of Rs. 2,99,20,000/- only. Accordingly, we are of the view that this issue requires fresh examination at the end of the AO. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO for examining it afresh by duly considering the explanations of the assessee. In the set aside proceedings, the AO may examine the above said sellers of land, if it is considered necessary. 8. The next issue relates to the addition of Rs. 1,07,46,510/-, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice, we are of the view that the additional evidences should be admitted and the assessee should be given opportunity to substantiate the loan taken from directors. Accordingly, we admit the additional evidences. Since these evidences require examination at the end of the assessing officer, we set aside the order passed by Ld CIT(A) on this issue and restore this issue also to the file of the assessing officer for examining it afresh. The assessee is also directed to furnish all the information and explanations to substantiate the loan taken from the directors. 11. The last issue relates to the addition of Rs. 2,25,16,003/-, being the advance received from customers towards sale of plots. The AO noticed that the assessee has received ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash credits received by it. We notice that the assessee has furnished certain documents in respect of some of the advances. It has also given explanations with regard to certain other advances. None of these documents and explanations has been examined by the tax authorities. Accordingly, we are of the view that this issue also requires examination at the end of the AO. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO for examining it afresh. 14. After affording adequate opportunity of being heard, the AO may take appropriate decision in respect of all the above said issues in accordance with law. 15. The last issue urged by the assessee relates to charging of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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