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2015 (6) TMI 312 - AT - Income TaxAddition u/s. 41(1) - cessation of liability of outstanding interest shown as payable by the assessee to his group concern - CIT(A) deleted the addition - Held that:- The assessment year under consideration is A.Y. 2008-09 in respect of which, the A.O. noticed that the assessee had continuously avoided the payment of tax by showing the said interest liability as payable, whereas the creditor AOP had not shown it as its ‘income’ because of the different accounting methods, that too, so managed by the assessee. After the addition has been made by the A.O., and the litigation has started, the assessee to avoid further consequences, has allegedly been paid the said amount in the year 2013. We find that the appeal in this case before us, had been filed on 08.05.2012 and the said liability has allegedly been paid even after the filing of the present appeal by the Revenue. The payment of a liability in the year 2013 by the assessee, in our view, it is nothing but an afterthought to avoid the consequence of addition made by the A.O. during the assessment proceedings for the year consideration. In view of this, we do not agree with the contention of the assessee in this respect. In view of our observation made above, we hold that the A.O. has rightly made the addition u/s.41(1) of the Act in this case and the same is confirmed. The order of the ld. CIT(A) is set aside and that of the A.O. is restored on this issue. - Decided against assesse.
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