TMI Blog2015 (5) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability in the balance sheet as on 31.3.2007. It is well settled principles of law that a liability if accepted in the balance sheet filed in the income tax proceedings is an acceptance of liability under the Limitation Act. Therefore, the period of limitation for recovery of the amount would run from the date on which the liability is accepted in the balance sheet which was filed in the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the order of the Commissioner of Income-tax (Appeals), Salem, dated 28.11.2014 and pertains to assessment year 2007-08. 2. Shri T.S.Lakshmi Venkataraman, ld. Representative for the assessee submitted that the assessee is engaged in the business of dealership with M/s Hindustan Lever Products. A survey was conducted in the premises of the assessee on 25.1.2007. During the course of assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative submitted that inspite of repeated opportunities given to the assessee, the assessee could not furnish the confirmation letter from the creditor for the outstanding shown in the balance sheet as on 31.3.2007. The Assessing Officer found that the assessee had no transaction with the creditor during the relevant financial year and the creditor had also not taken any effort to collect the due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enever an opportunity comes to it outside the court of law. Moreover, the assessee accepts the liability in the balance sheet as on 31.3.2007. It is well settled principles of law that a liability if accepted in the balance sheet filed in the income tax proceedings is an acceptance of liability under the Limitation Act. Therefore, the period of limitation for recovery of the amount would run from ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
