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2017 (1) TMI 1432 - AT - Income TaxAddition on account of sundry creditors which were static for more than four years - Held that:- The learned DR was not able to demonstrate that this addition deleted by Hon’ble Tribunal was reversed by Hon’ble High Court and therefore, the deletion of assessment year 2007-08 had become final. Therefore, the same addition of same creditors cannot be made in the present year. The argument of learned DR that the creditors had become time barred do not hold any force in view of the fact that the assessee continued to declare creditors in the balance sheet and had been confirming the existence of such creditors by signing the balance sheet and therefore the debt was not time barred. We find that in assessment year 2012-13, the entire creditors were got adjusted as on 31.3.2012. As per paper book page 11, none of the creditors remained outstanding. This fact is verifiable from the order of assessment for assessment year 2012-13 where the Assessing Officer had discussed the writing off creditors against certain debit balances. Such fact has been discussed by Assessing Officer at para 3.1 onwards wherein the Assessing Officer had disallowed the amount relating to debit balances against the credit balances and in fact by this action, the Assessing Officer had taxed the sundry creditors indirectly. - Decided against revenue
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