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2023 (3) TMI 964 - AT - Income TaxAddition u/s 41(1) - liability due in assessee’s books for the past 3 years to be ceased - AO in order to verify the genuineness of the trade payables and purchases sought information from the parties and issued notices u/s 133(6), but these notices were returned unserved - HELD THAT:- As evident from the record that the assessee could not produce any of the parties with which it had transactions of purchases and trade payables during the year and sought further time to comply with the said directions. However, since the time period of completing the assessment was getting expired, the AO proceed to complete the assessment on the basis of material available on record. As per the assessee, as the notices issued u/s 133(6) of the Act were returned unserved, therefore, it tried to file the details, as sought, before the AO. In this regard, reference was made to the letters filed before the AO. It is further evident that without considering the details/evidence filed by the assessee, the AO treated the liability due in assessee’s books for the past 3 years to be ceased and made the addition u/s 41(1) - the purchase transaction and sundry creditors were treated as bogus by the AO, and the addition was made in hands of the assessee. As various details filed by the assessee, as noted above, were not examined by the AO and the learned CIT(A) deleted the addition, inter-alia, on the basis of such documents without calling for any remand report on the same from the AO, therefore, we deem it appropriate to remand the matter to the file of AO for de novo adjudication - Appeal by the Revenue is allowed for statistical purposes.
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