TaxTMI 
TaxTMI 
2020 (12) TMI 925
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....nterest from partners amounting to Rs. 52,22,821/- as "income from other sources" instead of income earned in the course of construction of project Ellora Olearies." 3. Ground Nos. 1 and 2 relates to addition of Rs..48,94,662/- made u/s.68 of the Act on account of unexplained cash credits and consequential disallowance of interest expenses of Rs..3,71,809/- on unsecured loans. 4. The Assessing Officer while completing the assessment noticed that assessee received unsecured loans of Rs..88,55,181/-from various parties during the assessment year under consideration. The assessee was required to furnish details of such unsecured loans received during the year. Assessee furnished certain details in respect of these unsecured creditors. The Assessing Officer noticed that assessee could not furnish any details in respect of 11 parties from whom unsecured loans of Rs..33,55,628/- was received by the assessee and in respect of 15 parties from whom the assessee received unsecured loans of Rs..54,99,553/- assessee furnished only confirmations. Since the assessee could not furnish bank statements and other details of unsecured loans he concluded that the assessee has not discharged its ....
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....ge. 8. On hearing both the parties and perusing the additional evidences furnished by the assessee, we are of the view that all these additional evidences furnished by the assessee in respect of the 16 creditors would go to the root of the matter of the addition made in respect of these unsecured loan creditors. Thus, in the interest of justice we admit these additional evidences and restore them to the file of the Assessing Officer for denovo adjudication of the addition made in respect of these creditors as these evidences were not produced before the Assessing Officer. Thus, this issue of addition towards unsecured loans and the disallowance of consequential interest thereon is restored to the file of the Assessing Officer for deciding afresh in accordance with law after providing adequate opportunity of being heard to the assessee. Needless to say that the assessee shall cooperate with the proceedings before the Assessing Officer by filing all these additional evidences before the Assessing Officer. Thus, Ground No. 1 and 2 are allowed for statistical purpose. 9. Coming to Ground No. 3 of grounds of appeal which relates to interest received from partners amounting to R....
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....ng assessment year i.e. A.Y: 2009-10 while completing the assessment u/s. 143(3) of the Act. Similarly, Ld. Counsel for the assessee referring to Page No. 212 of the Paper Book submitted that this position was accepted by the Ld.CIT(A) for the immediately succeeding assessment year i.e. A.Y. 2011-12 and there is no appeal by the revenue. Therefore, Ld. Counsel for the assessee submits that following the principle of consistency claim of the assessee should be accepted. 12. Ld. DR vehemently supported the orders of the authorities below. 13. We have heard the rival submissions, perused the orders of the authorities below. We have also perused the Assessment Order for the A.Y: 2009-10 and also the Ld.CIT(A) order for the A.Y. 2011-12 the treatment followed by the assessee has been accepted by the department while completing the assessment u/s. 143(3) of the Act for the A.Y. 2009-10 and also for the A.Y. 2011-12. We observe from the order of the Ld.CIT(A) for the A.Y. 2011-12 that the treatment of the assessee in treating the interest income from partners as "business income" and reducing the same from closing work in progress has been accepted. The relevant submissions of th....
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....n the two to justify the merging of their financials. (vii) Thus the loss of Rs. 3,01,07,165/-incurred on plot no 807 should be allowed in the year in which it is accrued, i.e. the impugned, assessment year instead of adding the same to the closing WIP of Plot no: 786 and deferring in to an indefinite future. (viii) Even otherwise the stand of Id. AO is grossly contrary., If everything is to be adjusted .in WIP of Plot No.786, then income, of "Ellora Castle" should not have been taxed separately. As per the logic of Ld.AO even that profit of Ellora Castle should have been adjusted against the WIP of Plot no 786. Therefore, Ld AO's stand is illogical and contradictory. (ix) The Appellant has charged interest on the partners capital account for an amount of Rs. 87,91,409/- on account of amounts overdrawn by them. The said amount was credited to Profit & Loss account for the year .under appeal as income. The said interest income was reduced from the closing work-in-progress for plot no.736 as mentioned in chart above and thus closing work-in-progress of plot no.786 was arrived at Rs. 9,10,97,029/-. Ld. AO inadvertently missed to take into account the int....