Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 50 - ITAT MUMBAIAddition of unproved credits - outstanding liability on account of aviation fuel - Held that:- Inspite of being specifically required to, the assessee has not been able to furnish any basic material evidence to establish that the alleged fuel purchases were ever made by it in the past. The assessee itself accepted that ₹ 8 lakhs thereof could not be reconciled by it. Even bills for purchase thereof, confirmations from so called creditors in respect of outstanding balances were never furnished. That the said amounts were outstanding liabilities of the earlier years is also not established by the assessee. Also note that the averments by the assessee that it had written back and offered these amounts of ₹ 99 lakhs for taxation in the A.Y. 2012-13, was found to factually incorrect by the AO and this fact was admitted to be so by the learned A.R. in proceedings before us, i.e. that these amounts were not written back/offered to tax in the assessee’s return of income for A.Y. 2012-13. Thus we agree with the learned CIT(A) that it can be concluded that there is no genuine outstanding liability on account of aviation fuel and therefore no likelihood of any amount being paid on this account in the future and further that this amount of ₹ 99 lakhs claimed by the assessee is a bogus liability. The fact that the assessee has in its submissions before the learned CIT(A) (supra) stated that it has written back and offered to tax the so called outstanding liabilities of ₹ 99 lakhs in A.Y. 2012-13, evidences that the assessee itself admits that the liability in question is not genuine and was put forth only after the detection of these bogus outstanding liabilities of ₹ 99 lakhs by the AO. Thus when the existence of the stated outstanding liability on account of aviation fuel is found to be bogus, we are of the considered view that the addition is to be upheld on account of the said bogus liability of ₹ 99 lakhs remaining unproved.- Decided against assessee
|