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2019 (9) TMI 1149 - MADRAS HIGH COURTAddition u/s 41(1) - proof of seizure of Sundry Creditors - HELD THAT:- Assessing Authority had made due inquiry from the Sundry Creditors whose addresses and details were supplied by the assessee during the course of assessment proceedings and the communications thereon from the assessee. Assessee failed to rebut the adverse material with regard to the Creditors viz., Hari Traders and another M/s.Sunil, who had apparently confirmed that they did not make any claim of the amount of the unpaid amount due to them. It was thus for the assessee to rebut that material by either producing the relevant documentary evidence or the Sundry Creditors to show that the liability had not ceased in the eye of law so as to attract Section 41 (1) of the Act. Now, on the fact finding exercise undertaken by Appellate Authority also, except making the averments to the effect that these Sundry Creditors were paid, no documentary proof thereof has been produced by the assessee and, therefore, the learned Tribunal, in our opinion, has rightly held that the said averments of the assessee could not be believed on their face value. However, we feel that the matter requires further investigation and inquiry at the hands of the Assessing Authority and, the learned Tribunal, instead of reversing the order of the learned CIT (A), ought to have remanded the matter back to the Assessing Authority in such facts and circumstances of the case to ascertain whether the trade liability towards the Sundry Creditors shown in the Balance Sheet had ceased in the eye of law or whether such trade liability genuinely continued or not. Dispose of this appeal with the remand of the case to the Assessing Authority without answering the Substantial Question of law, framed above.
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