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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 ..... on 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. Addition of loans taken from directors u/s 68 - HELD THAT:- Before Ld CIT(A), the assessee has submitted bank statements of directors and also ledger account copies. Before the AO, the assessee has submitted copies of their income tax returns. During the course of hearing before us, the Ld A.R also submitted that the assessee could not furnish all these details, since there was change of counsel appearing before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jt.CIT(DR)(ITAT), Bengaluru. ORDER PER B R BASKARAN, ACCOUNTANT MEMBER The assessee has filed this appeal challenging the order dated 09.08.2019 passed by Ld CIT(A)-3, Bengaluru and it relates to the assessment year 2012-13. The Ld A.R did not press ground no.2, wherein a legal issue has been urged. Remaining grounds urged by the assessee 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 231 of paper book. The payment schedule reads as under:- (a) Amount paid vide DD bearing No.229515 dated 23.09.2011 drawn on Kotak Bank, Banashankari, Bangalore. ₹ 20,00,000 (b) Amount paid vide DD bearing No.229514 dated 23.09.2011 drawn on Kotak Bank, Banashankari, Bangalore. ₹ 15,00,000 (c) Amount paid vide DD bearing No.000063 dated 09-11-2011 drawn on Kotak Bank, Banashankari, Bangalore. ₹ 20,00,000 (d) Amount paid vide cheque bearing No.000064 dated 09.11.2011 drawn on Kotak Bank, Banashankari, Bangalore. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He submitted that, in the case of land transactions, offering of credit by the sellers is against human probabilities. Hence the Ld CIT(A) has taken the view that the assessee could have settled the payment by way of cash outside the books of accounts. 7. We heard rival contentions and perused the record. Before us, the Ld A.R also argued that the transaction of purchase of land is a trading activity in the hands of the assessee. Hence, the assessing officer, after accepting the genuineness of purchases, could not make addition of outstanding creditors u/s 68 of the Act. However, we notice that the assessee has failed to produce both the sellers referred above before the AO. However, the Ld A.R is able to demonstrate that the payments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er assessed a sum of ₹ 1,07,46,510/- as unexplained cash credit u/s 68 of the Act. 9. Before Ld CIT(A), the assessee furnished additional evidences and hence the first appellate authority also called for a remand report from the assessing officer. However, the ld CIT(A) chose not to admit additional evidences and accordingly confirmed the additions. 10. We heard the parties on this issue and perused the record. There is no dispute that the impugned amounts have been received from the directors, who are actually managing the affairs of the assessee company. Before Ld CIT(A), the assessee has submitted bank statements of directors and also ledger account copies. Before the AO, the assessee has submitted copies of their income t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot respond. The assessee filed copies of bank statements with the submission that some of the advances have been returned back. The AO did not accept the same. Accordingly he added a sum of ₹ 2,25,16,003/- to the total income of the assessee. The Ld CIT(A) also confirmed the same. 12. The Ld A.R submitted that the assessee had taken over the Nelemangala project from original developer named M/s Kethamaranahalli House Building Co-op Society. He submitted that some of the advances were returned back in the subsequent year. The assessee has obtained confirmation letters and bank statements from two persons named Surya Sena Reddy and Pushpavathi. It has also obtained bank statement from Kurnool Gas Agency. One sale deed has been execut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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