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2017 (2) TMI 1018 - ITAT AHMEDABADPenalty u/s.271(1)(c) - addition u/s 68 and 41(1) - Held that:- The assessee could not file even a single relevant particular of its creditor so far as Section 68 addition is concerned so as to form even a prima facie case to claim genuineness thereof. Even in the instant penalty file does not contain any such particulars much less to talk about quantum proceedings. It is thus clear that the assessee raised the impugned sundry credits claim without any evidence at all. We accordingly find no reason to disturb learned CIT(A)’s finding as extracted in the preceding paragraph that the abovestated Section 68 addition amount is an instance of furnishing of inaccurate particulars of income. For addition u/Section 41(1) both the authorities below hold that the assessee did not file any details of the relevant creditor in order to prove its liability by way of verification. Shri Madhusudan (learned Senior Departmental Representative) strongly argues that the assessee failed to discharge even its prima facie onus alike Section 68 addition so as to claim its sundry credit liability. We find no force in this plea as the assessing authority invoked Section 41(1) of the Act thereby treating assessee’s liability to have been ceased to exist as the same was more than a year old. We observe in these peculiar facts that the said liability claim already stood accepted earlier since Section 41(1) pre-supposes existence of a liability in order to treat the same to have been ceased to exist. We accordingly conclude that the authorities below have erred in treating the assessee’s liability as both bogus as well as ceased to exist u/s.41(1). We thus accept assessee’s challenge to the impugned penalty pertaining to this latter component. Assessee’s appeal is partly allowed.
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