TaxTMI 
TaxTMI 
2012 (11) TMI 108
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....axing of the entire amount of Contribution of Rs.75,06,811 received during the year under appeal from the members for the purpose of the meeting the cost of residential units/flats on the alleged ground that the appellant carried on an adventure in the nature of trade without appreciating the facts of the case as mentioned in the Statement of Facts filed before the learned CIT(A) merely because the amount so received was wrongly shown under the head 'Unsecured Loans' by the auditors in the Balance Sheet as on 31-3-2006 and the members did not accept that the same was given by way of unsecured loans. It is submitted that the in view of the facts mentioned in the said Statement of Facts, the said amount cannot be taxed as the sale value of th....
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....ing Officer (AO) while finalizing the assessment made addition of Rs.75,06,811/- levied as unsecured loan. The assessee feeling aggrieved by this order filed appeal before Ld. CIT(A) who after considering the submissions dismissed the appeal of the assessee. 3. Now the assessee came in second appeal before us. 4. Ld. AR of the assessee submitted that the entire amount of Rs.75,06,811/- received during the year under appeal from the Members for the purpose of meeting cost of residential flats, was added into the income of the assessee merely because the amount so received was wrongly shown under the head "unsecured loan" by the auditors in balance-sheet as on 31- 03-2006 and the Members did not accept the same as unsecured loan. He sub....
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....e assessee has carried on the adventure in the nature of trade. He has taxed the entire amount of contribution received from the Members without giving any deduction in respect of the cost of land and construction of the building thereon and duly reflected in the balance-sheet as on 31-03-2006 filed with the AO. He submitted that the work was still incomplete as on 31-03-2006 and therefore, the excess amount received has to be treated as an amount received in advance and not as income. The construction was completed in the AY 2006-07 and the actual cost was Rs3,03,63,761/- as against the total contribution of Rs.3,04,10,113/- received from the Members till 31-03-2007 and thus effectively there was a surplus of Rs.46,352/- only which can be ....
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.... not substantiate the claim of unsecured loan from the persons who had given such amount to the assessee-company. He relied on the orders of authorities below. 6. We have heard the rival submissions and perused the materials available on record and the judgment cited by Ld. AR. We find that Assessing Officer has made addition of Rs.75,06,811/- on the ground that any unsecured loan appearing as a liability in the balance-sheet is payable to the lender. But in this case, the liability / unsecured loan was not payable back to the lender. The alleged lenders had denied advancing of any loan. Any non-refundable receipt is a trading receipt and taxable fully in the hands of the recipient. Therefore, the entire amount of Rs.75,06,811/- ap....