TMI Blog2015 (9) TMI 1535X X X X Extracts X X X X X X X X Extracts X X X X ..... s, Tolani Fabricators is debtor and not creditor. Therefore, atleast to this extent i.e. balance of Tolani Fabricators cannot be added u/s. 41(1) of the Act. We accordingly, direct the AO to delete the addition of ₹ 10,08,641/-. In so far as the balances of other creditors are concerned, in our considered opinion, the claim of the assessee needs to be verified at the assessment stage. We, therefore, restore the issue to the file of the AO. The assessee is directed to demonstrate that the impugned creditors have been written back in the subsequent years to the satisfaction of the AO and the AO is directed to verify the same and if the claim of the assessee is found correct the additions should not be made. - ITA No. 7433/Mum/2012 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings of the revenue authorities. 4. We have carefully perused the orders of the authorities below. It is an admitted fact that during the year under consideration, the assessee has not earned any income, which is exempt from tax. In a recent decision Hon ble Delhi High Court in the case of Cheminvest Ltd. (IT Appeal No.749/2014 dated 02.09.2015 arising out of the order of the Delhi Benches of the Tribunal in ITA No.87/Del/2008), it has held that no disallowance u/s. 14A can be made in a year in which no exempt income has been earned or received by the assessee. Respectfully following the decision of the Hon ble High Court of Delhi, we direct the AO to delete the addition of ₹ 11,73,666/-. Ground No.1 is accordingly allowed. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the say of the counsel that they have been written back in the subsequent years and, therefore, if the same is added back in the year under consideration it would amount to double taxation. Per contra, the DR could not add anything new to what had already been mentioned by the lower authorities. 7. We have carefully perused the orders of the authorities below and have also gone through Annexure XIII of the statement of account, which is details of Sundry Creditors Unmoved. We find force in the contention of the learned counsel. The balance outstanding in the name of Acquatech Proflow Pipe Lining Pvt. Ltd, is not ₹ 19,84,908/- but ₹ 9,67,180/- and as per the list of sundry debtors, Tolani Fabricators is debtor and not credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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