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2023 (2) TMI 630 - ITAT DELHIAddition u/s 68 - disallowance of sundry creditors - assessee company has gone into liquidation, order passed by Ld. NCLT - Effect of proceedings before Ld. NCLT - CIT-A deleted addition - HELD THAT:- As decided by CIT-A entire information as sought by the AO has been furnished and, no discrepancy has been pointed by the AO and merely non-compliance of section 133(6) by the concerned creditors is not valid in the eyes of law - if purchases have been accepted and the opening balance of these accounts are also not in dispute as the previous year assessment i.e. A.Y. 2010-11 was completed u/s 143(3), thus, if does not attract any adverse action u/s 68 - opening balance of the concerned creditors are also not in dispute, Sales, Gross Profit and Net Profit are better than earlier years thus, an estimated addition made by the AO is not justified. The addition made deserves to be deleted. No reason to interfere in the finding on fact recorded by Ld.CIT(A), the same is hereby affirmed. Thus, grounds raised by the revenue are dismissed. Moreover, now it is brought to our notice that the assessee company has already gone into liquidation. Therefore, in view of the provision of section 238 of CIRP code, the proceedings before Ld. NCLT would have over-riding effect. Therefore, it is made clear that the parties shall be at liberty to exercise their remedies available under Insolvency and Bankruptcy Code, 2016 (“IBC”). Appeal of the Revenue is dismissed.
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