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2014 (3) TMI 69 - AT - Income TaxUnpaid creditors written off – Application of section 41(1) of the Act – Held that:- On given addresses of the creditors, the letters were returned back unserved and in one case, namely, M/s. Ashok Trading Company had denied having been any business transaction with the assessee - The creditors had been shown as liability in the balance sheet during the year under consideration as per assessee’s submission, it was pertained to A.Y. 03-04, whereas the CIT(A) confirmed the addition on account of nonexistence of liability - The facts show that outstanding remained to pay for more than 4 years which is not possible – assessee contended that the amount has been paid in A.Y. 09-10 – thus, the AO is directed to verify whether the creditors have been paid or not – Decided in favour of Assessee.
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