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2017 (4) TMI 611 - AT - Income TaxAdditions u/s 41(1) when the liability is no longer payable - Liability towards Excise CENVAT Credit - proof of liability exists or still payable - Held that:- CIT(A) has explained the issue categorically. It was observed that the assessee was working as processing house. It used to receive goods from clients. On receipt of such goods, it debits and credits client’s account in respect of process charges paid and CENVAT available corresponding to the goods received by them for processing. Any excise duty paid on behalf of the clients was debited to their account and any CENVAT credit receivable in respect of goods of clients was credited in the client’s account. It is for this reason that CENVAT credit appears on the liability side and this amount was apparently payable to the parties from whom goods were received for job work. According to the ld.CIT(A) the assessee has tried to misrepresent the facts by showing it as liability towards Government. The ld.CIT(A) has rightly observed that liability is not payable and the assessee-company has failed to establish that this liability exists or still payable. After perusal of well reasoned finding of the ld.CIT(A) we see no reason to interfere in it. Hence, the appeal of the assessee is dismissed being devoid of any merit. - Decided against assessee
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