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2022 (12) TMI 493 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - assessee had shown an amount under ‘Other payables’ being payable to M/s. Niharika Impex Pvt.Ltd - nature of loan/payments was not clear from the submissions received. - HELD THAT:-As contention of the assessee that the amount in question was not paid during the year under consideration in support of this and relied on ledger A/c of M/s. Niharika Impex Pvt.Ltd. This fact needs verification at the end of AO. We therefore, restore this issue to AO for decision afresh. If the AO finds that the amount was not paid during the year under consideration, he shall delete the addition. This Ground of assessee’s appeal is allowed for statistical purposes. Addition u/s 41(1) of cessation of liability - discharge of liability towards the outstanding creditors - HELD THAT:- The assessee stated that she was unable to discharge her liability towards the outstanding creditors and other payables as all the bank account of the assessee have been attached by the Income Tax Department and as a result, the assessee had been put to lot of inconvenience. The amount was withheld during the course of business payments and there is no cessation of liability as such. The contention of the assessee is that the liability is still subsisting hence, it can not be treated as income of the assessee. Therefore, looking to the totality of facts, the question whether the liability was subsisting, needs verification. AO is hereby directed to carry out necessary verification by making necessary inquiry. Needless to say that AO would afford adequate opportunity to the assessee. Ground No.2 raised by the assessee is allowed for statistical purposes. Addition u/s 41(1) of the Act on account of cessation of liability - HELD THAT:- We find that it is the contention that liability has been subsisting, this needs verification by the AO. We therefore, direct the AO to verify the claim of the assessee that the impugned liability is still subsisting and if he finds that the liability is still subsisting, he would delete the addition. Thus, Ground No.3 raised by the assessee is allowed for statistical purposes.
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