TaxTMI 
TaxTMI 
2020 (5) TMI 260
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....n 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 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 ....
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....ng No.000064 dated 09.11.2011 drawn on Kotak Bank, Banashankari, Bangalore. Rs. 20,00,000 (e) Amount paid by cash before the 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 th....
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....all these explanations require verification at the end of the assessing officer. We notice that the tax authorities have not examined these finer details. 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, ....
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....ounsel appearing before the AO. The fact of change of counsel has been noted by the AO in paragraph 14 of his order. Under these set of facts, in the interest of natural justice, 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....