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TMI Blog2024 (7) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... ame as in the first round, the AO disbelieved the claim of assessee that the advances were received from various persons and held that the assessee has not proved the identity of the persons and genuineness of the transaction. AO this time has, however, has mentioned about the CBI and EOW inquiry to support his action of making addition u/s 68. CIT(A), as in the first round, upheld the findings of the AO in this round too. Before us, the assessee has placed the documents of the Government of Odisha referring to the status report on the issue of identifying the depositors in the schemes of Golden Land Developers Ltd and GLP Developers Ltd and of refund of the deposits to them. The assessee has also placed before us the order of Orissa High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out low cost housing project at Kendrapara, Orissa with the approval of Kendrapara regional Trust towards which, it received advance from more than 2000 customers ranging from Rs. 2,000/- to Rs. 5,00,000/- all in cash totaling to Rs. 3,04,40,210/- in A.Y 2006-07 and Rs. 2,70,01,863/- in A.Y 2007-08. 4. During the original assessment proceeding, since the assessee failed to prove the genuineness of the advances so received, the entire amount of advances so received were treated as unconfirmed cash credit in terms of section 68 of the Act in both the assessment years. Besides, an amount of Rs. 46,31,453/- was disallowed u/s 40A(3) of the Act in A.Y 2007-08. 5. Thereafter, the assessee preferred an appeal before ld.CIT(A) challenging the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l depositors to support his argument that the depositors were identified and action is being taken to refund the amount taken from them and, therefore, addition made on that count u/s 68 of the Act by the Assessing Officer cannot be sustained. 10. The ld. counsel for the assessee placed reliance on the decision of the Hon'ble High Court of Orissa at Cuttack in WP(C) No. 14492 of 2021 order dated 01.09.2023 in the case of GLP Developers Ltd IA No. 13957 of 2023. The ld. counsel for the assessee drew our attention to Para 6 of the said order where the Hon'ble High Court is giving direction for identifying the investors and to make payments accordingly to the investors/depositors. 11. The ld. counsel for the assessee fairly submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court cognizance of the matter and the Government of Odisha correspondence, we are of the considered opinion, that the details of depositors need further examination and verification in the context of the provision of section 68 of the IT Act. We, accordingly, restore this issue to the file of the Assessing Officer. The Assessing Officer is directed to examine and verify details of the depositors and decide the issue afresh after giving reasonable opportunity of being heard to the assessee. The assessee is also directed to furnish evidences/documents as required by the Assessing officer. 15. In the result, both the appeals of the assessee in ITA Nos. 2106 and 2107/DEL/2022 are allowed statistical purposes. The order is pronounced in the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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