Safal Construction Private Limited, Bhubaneswar V. ITo, Ward- 1(3), Bhubaneswr

ITA 437/CTK/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7038 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 19-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 13; 68

Judgement Text

ITA NO.437/CTK/2019 ASSESSMENT YEAR : 2014 - 15 P A G E 10 | 13 AO BY ISSUING REQUEST LETTERS THROUGH SPEED POST DESPITE THE FACT THAT THE AO GAVE TWO WEEKS TIME ONLY TO THE ASSESSEE FOR PRODUCING 76 CUSTOMERS IN PERSONS. 16. BE THAT AS IT MAY, WE ARE OF THE CONSIDERED VIEW THAT WHEN SEVERAL CIVIL SUITS ARE PENDING BEFORE THE DIFFERENT COURTS AS WELL AS BOARD OF REVENUE/OTHER REVENUE COURTS, PERTAINING TO THE PATCH OF LAND OUT OF WHICH RESPECTIVE PLOTS ARE TO BE ALLOTTED BY THE ASSESSEE AND DUE TO INCREASE IN THE PRICE OF LAND, CUSTOMERS ARE NOT READY TO CANCEL THEIR BOOKING AND TO GET BACK THEIR ADVANCE AMOUNT, IN THESE SITUATION, THE SALE OF PLOT IS BEYOND THE CONTROL OF THE ASSESSEE AND THE AMOUNT OF ADVANCE IS STILL LYING AS LIABILITY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE UPTO A.Y. 2016 - 17. THEREFORE, THIS AMOUNT CANNOT BE TREATED AS UNEXPLAINED CASH CREDIT IN THE HANDS OF THE ASSESSEE FOR INVOKING PROVISIONS OF S ECTION 68 OF THE ACT. 17. DURING THE ARGUMENTS, LD A.R. EXPLAINED THAT ADVANCE FROM CUSTOMERS ARE LYING IN THE ACCOUNT OF THE ASSESSEE FOR A.Y. 2016 - 17 RELEVANT TO FINANCIAL YEAR 2015 - 16 OF RS.75, 64,756/ - AFTER ADJUSTMENT OF REFUND OF RS.10,43,750/ - FRO M THE TOTAL ADVANCE AMOUNT OF RS.86,08,506/ - AND THIS AMOUNT IS CLEARLY DISCERNIBLE AND VISIBLE FROM THE FINANCIAL STATEMENT AND BOOKS OF ACCOUNT OF THE ASSESSEE. ON THIS STATEMENT OF LD A.R. AT BAR, LD DR SUBMITTED THAT HE HAS NO OBJECTION IF THE ISSUE O F VERIFICATION OF ABOVE ITA NO.437/CTK/2019 ASSESSMENT YEAR : 2014 - 15 P A G E 12 | 13 WHETHER THE IMPUGNED AMOUNT OF ADVANCE FROM CUSTOMERS , AFTER ADJUSTMENT OF REFUND OF RS.10,43,750/ - , OF RS.75,64,576/ - HAS BEEN SHOWN AS LIABILITY AS ON 31.3.2016. WE DIRECT THAT I F THE AO AFTER VERIFICATION OF BALANCE SHEET AND FINANCIAL STATEMENTS FINDS THAT THE AMOUNT HAS BEEN KEPT AND SHOWN AS LIABILITY AS ON 31.3.2016 DUE TO PENDING CIVIL LITIGATIONS, THEN HE WILL DELETE THE ADDITION MADE U/S. 68 OF THE ACT. 20 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 9 / 0 9 /20 20 . SD/ - SD/ - (LAXMI PRASAD SAHU) ( CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 9 / 9 /20 20 B.K.PARIDA, SPS (OS) COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : SAFAL CONSTRUCTION PVT LTD., RATH ROAD, OLD TOWN, BHUBANESWAR 2. THE RESPONDENT. ITO, WARD 1(3), BHUBANESWAR 3. THE CIT(A) - 1 , BHUBANESWAR 4. PR.CIT - 1 , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//