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2022 (11) TMI 1197 - AT - Income TaxAddition u/s 68/41 - opening balance of advances for booking and another sundry creditor - old sundry creditors appearing in the balance sheet - assessee has not filed any confirmation of creditors, copy of ITRs of so-called advances given, were furnished - taxability of sundry creditor u/s 41(1) - HELD THAT:- As held that advances for booking and sundry creditor added are carried forward from earlier year and cannot be added under section 68. For creditor assessee furnished copy of sale deed, wherein the details of cheque given to the seller and bank statements established that seller has not deposited cheques or encashed the said amount. CIT(A) recorded that assessing officer had given categorical findings that the above amounts of both the additions are opening balance. On such observation, CIT(A) was of the view that there is no dispute that amounts added are actually opening balance, which was carried forward from assessment year 2014-15. On the observation of AO for taxing the sundry creditor u/s 41(1) being ceased trading liability to assessee who is a builder, we find that the AO was given liberty to examine such facts in relevant assessment year. Once the AO is given liberty, the Ld. CIT(A) found no reason to wait for her remand report as no prejudice is caused to either party on adjudication the matter. We are conscious of the fact that there is no ground of appeal raised by the revenue for making/ sustaining addition under section 41(1), yet we may observe that the assessing officer has not brought any evidence to show that it was a cessation or remission of trading liability. Asin PCIT Vs Matruprasad C Pandey [2015 (4) TMI 830 - GUJARAT HIGH COURT] held that amount of old sundry creditors appearing in the balance sheet cannot be added under section 41(1) unless and until it is found that there is remissions/ cessation of liability and that too during the relevant assessment year. Thus, on the basis of the aforesaid factual and legal position, we do not find any infirmity in the order of ld CIT(A) in deleting the addition of advance bookings and sundry creditors, which we affirms with these additional observation.
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