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2013 (12) TMI 943 - AT - Income TaxTrading liability - genuineness of the entities against whom trading liabilities have been shown - assessee contended that if wants to make the addition on account of bogus credit u/s 68. Then, it has to be made in the year in which the credits were recorded first time. It is a carry forward from the earlier year, the AO has not disputed this aspect. If AO wants to make addition on account of cessation of liability u/s 41(1) of the IT Act then, the liability has not ceased, assessee has partly made the payment during this year and remaining in the next year. - Held that:- The reasoning of the ld. CIT (A) is that assessee failed to produce bank details of Raj Industrial Corporation indicating the credits of the amounts debited from its account. To our mind, it is a little too higher technical approach the assessee can produce its accounts, a certificate from its banker. It is to be seen that, why it will pay an amount to some unknown entity. - Decided in favour of assessee. Demand of CENVAT - Held that:- It is an additional liability of the taxes. It is not related to any penalty - The AO has observed that it is panel in nature but how it is penal in nature AO has not observed this fact - Decided against Revenue.
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