TMI Blog2013 (3) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... d is with regard to the addition of Rs.4 lakhs as unexplained cash credit in - Held that:- the onus cast on the assessee is not discharged. In the circumstances, we have no hesitation in confirming the addition on this count. In view of the above, this ground of the assessee is hereby dismissed. The last ground is with regard to confirmation of disallowance of 15% of development expenses without appreciating the fact that such expenses were not debited to Profit & Loss account and the same was being shown in the balance sheet - Held that:- we set aside this issue to the file of the assessing officer to examine whether this is an expenditure claimed by the assessee in the Profit & Loss A/c or shown as an item in the balance sheet. - De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessees expressed their inability to submit the supporting bills/vouchers in proof of their identity giving such advances. In the absence of any documentary evidence for the receipt of the above impugned advances, it was treated as un-explained cash credits under section 68 of the Act. Before the CIT (A), the assessees furnished details of advances and stated that it was received towards sales. The CIT (A) called for the remand report from the assessing officer. The concerned assessing officer not furnished the remand report even after lapse of seven months, and then the CIT (A) decided the issue on merit without the remand report. The CIT (A) held that the assessee has to account for its receipts of a year as its sales when it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales affected by the assessee were reflected in the subsequent year on actual registration of the plots. However, the assessee not produced any evidence regarding offering of sales towards these advances in the subsequent year. The assessee is required to furnish the receipt and the appropriation of sale advances on plot-wise and the accounting of corresponding sales of plots in the subsequent year. Neither the revenue authorities nor the assessee brought on record actual offering of the sale advance as sale the subsequent year. This being so, we are not in a position to take an appropriate view regarding the correctness of the method of accounting followed by the assessee. In these circumstances and after considering the totality of facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, it was prayed to delete this addition. 8. We have heard both the parties and perused the material available on record. The assessee herein received loans from the minors and the confirmation letters were signed by their mother Smt. Deepa. However, the assessee failed to furnish the sources of these credits and the capacity of the said minors to advance the monies. The lower authorities have doubted the genuineness of this transaction. Before us also, the assessee is not able to produce any evidence regarding the capacity of the minors to advance the said loans. No bank account details or other relevant material to support this are furnished before us. Being so, in our opinion, the onus cast on the assessee is not discharged. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Profit Loss A/c or shown as an item in the balance sheet. In the event, if it is claimed as an expenditure, the assessing officer could disturb the same and disallow an expenditure claimed in the P L A/c to the extent of 10%, which, in our opinion, is reasonable. On the other hand, if it is Balance-sheet item, the assessing officer is precluded from doing so. 11. Since we have disposed of the main appeals filed by the assesses of even date, the Stay Applications Nos.164 and 165/Hyd/2011 have become infructuous and hence no adjudication is required. 12. In the result, assessees appeals Nos. 1462 and 1463/Hyd/2011 are treated as partly allowed for statistical purpose whereas the Stay Application Nos. 164 and 165/Hyd/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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