9911796707
TMI Blog2024 (7) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee received an amount of Rs. 7,09,87,186/- in cash and Rs. 89,55,697/- through cheques. The AO not having been convinced with the genuineness of the cash components comprising of small sums of advances received from several persons, particularly the creditworthiness of the persons made the advances mainly the lenders and farmers of remote areas, the advance received of Rs. 7,09,87,186/- made in cash has been added to the total income of the assessee as unsecured cash under Section 68 of the Act which was in turn deleted by the Learned CIT(A). Hence, the instant appeal before us. 3. At the time of hearing of the instant appeal, the Learned Counsel appearing for the assessee submitted before us that the issue is squarely covered in assessee's own case by and under the common order passed by the Co-ordinate Bench on 31.05.2024 in the case of ITA Nos. 2106 & 2107/Del/2022 for A.Ys. 2006-07 & 2007-08 whereby and whereunder, the Learned AO has been directed to examine and verify the details of the depositors in the context of provision of Section 68 of the Act and to pass order accordingly. Before us, the Learned Counsel appearing for the assessee prayed for the same relief wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 plots; (iv) Golden Plaza, Commercial Complex at Kasoti, Kendrapara-Plot area- 20,345.50 square feet; (v) Golden Villa Phase-I, Kajala, Kendrapara - the plot area is 2,62,013.40 square feet; (vi) Golden Central Plaza and Central Park, Balugaon - Plot area of 76,792.50 square feet; (vii) Golden House, Berhamput - Plot Area 12,280 Square feet; (viii) Golden Park Plaza, Gopalpur- Plot Area - 39,860.90 square feet; and (ix) Golden City, Duplex Project, Naharkanta - Plot Area-56,128 square feet. 6.4 The appellant was asked to furnish the accounting treatment in respect of sales and recognition of revenue. It was informed that the revenue from sale of plots of land for is recognised on transfer of legal title of the property in accordance of with Accounting Standard 9 (AS 9) on Revenue Recognition issued by Institute of Chartered Accountants of India (ICAI), for which cost incurred is apportioned, based on sold area and total saleable area, to the plots sold and charged to P&L A/c as cost of sale. The remaining cost is treated as work in progress. It was informed that till A.Y.2010-11, i.e. the current year, the appellant had not booked any revenue and only when the develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ote sheet entry dated 11.03.2013, as to why the advances may not be added to the income, the appellant, vide letter dated 22.03.2013, while furnishing detailed explanation, also furnished affidavits confirming source of income, address and the income from other 121 depositors, out of 130 depositors, from whom the appellant had received deposit through cash in excess of Rs. 50,000 during the current year. In addition, the appellant had also furnished their proof of residence in the form of Voter ID card, PAN, wherever applicable, receipt against the deposits received by the appellant and the Agreement/bonds executed by the appellant company. In respect of the remaining 9 depositors, similar evidences were furnished during the appellate proceedings. In view of this, evidently, the enquiry conducted by the Ld. AO in respect of the 50 depositors and further information collected in respect of top 130 depositors shows that these depositors had confirmed to have made deposits with the appellant company for allotment of land/house. No adverse observation in respect of the same was made by the Ld. AO except that he was not satisfied as to why such amounts were received in cash and he was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of this, the addition made in this regard under Section 68 is not sustainable as based on the enquiry conducted by the AO and the information furnished by the appellant in respect of 130 depositors, no adverse view can be drawn of receipt of cash deposits of small amounts, which is common in the business model of low cost real estate development, in the absence of any specific finding that such depositors or deposit from them are bogus in any manner. Moreover, the AO has held the cheque component of such deposits as explained. The appellant has discharged onus in respect of top 130 depositors by furnishing evidences in support of identity, genuineness and creditworthiness. Further, AO himself has carried out inquiry in respect of 50 other depositors and the contention of the confirmation letter furnished by these depositors were not rebutted by the AO, by finding fault on cogent grounds, on an independent inquiry. Thus, when the appellant furnished confirmation along with supporting documents, the onus was shifted to the AO. Moreover, the AO has not gathered any further evidences to substantiate the allegation that their creditworthiness was doubtful nor has spelt out the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission and to the orders of the authorities below. We find that this is the second round of litigation before the ITAT. In the second round, 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. The Assessing Officer this time has, however, has mentioned about the CBI and EOW inquiry to support his action of making addition u/s 68. The CIT(A), as in the first round, upheld the findings of the Assessing Officer in this round too. 14. 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 Court taking cognizance of the issue of identification and return of deposits in the case of GLP Developers Ltd and Another. In view of the Orissa High Court cognizance of the matter and the Government of Odisha correspondence, we are of the considered opinion, that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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