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2020 (4) TMI 331 - HC - Income TaxSuppression of closing stock - Tribunal noted as a matter of fact that the Assessing Officer has not pointed out any defect/infirmity in the books of accounts of the assessee - Tribunal upholding the order of the CIT (A) deleting addition - HELD THAT:- Tribunal has recorded concurrent findings of fact to the effect that there was no defect or infirmity in the books of accounts maintained by the assessee and has applied the decision of this court in the case of Commissioner of Income Tax vs. Arrow Exim Pvt. Ltd [2010 (1) TMI 769 - GUJARAT HIGH COURT] to the facts of the present case. Under the circumstances, the Tribunal merely having applied the decision of the jurisdictional High Court to the facts of the case, the said ground of appeal does not give rise to any question of law, much less, a substantial question of law, warranting interference. Inflated current liability in the books of account - Tribunal upholding the order of the CIT (A) deleting addition - HELD THAT:- Tribunal noted that in respect of the said items of current liabilities, the Assessing Officer has not pointed out any defect during the assessment proceedings and was of the view that before placing reliance on the statement furnished to the bank, the Assessing Officer ought to have pointed out the defects/infirmities in the current liabilities and the provisions shown by the assessee in its balance sheet. The Tribunal took note of the fact that the Commissioner (Appeal) has given a finding that the creditors shown by the assessee in its books of account exist in the books of account and that the learned DR for the revenue had not disputed this finding of fact. The Tribunal, accordingly, did not find any reason to disturb the findings recorded by the Commissioner (Appeal) and dismissed the ground of appeal. Thus, the Tribunal upon perusal of the material on record has found as a matter of fact that there were no defects in the items of current liabilities shown by the assessee in its balance sheet. In the light of the fact that the conclusion arrived at by the Tribunal is based upon concurrent findings of fact recorded by it upon appreciation of the material on record, no question of law can be said to arise out of the said ground of appeal. Cessation of liability u/s.41(1) - Tribunal upholding the order of the CIT (A) deleting addition - HELD THAT:-under sub-section (1) of section 41 of the Act, any amount obtained by an assessee whether by way of remission or cessation thereof, is required to be added to his income in the year of such remission or cessation. In the facts of the present case, the Assessing Officer has made addition of liabilities in respect of two sundry creditors which according to him, the assessee was not required to pay. The assessee, however, had not written off his liabilities. Thus, there was nothing on record to show that there was any remission or cessation of such liability. Under the circumstances, in the absence of remission or cessation of such liabilities, the question of invoking subsection (1) of section 41 of the Act did not arise. The Tribunal, therefore, did not commit any error in upholding the order passed by the Commissioner (Appeals). No question of law can therefore be stated to arise out of this ground of appeal also.
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