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TMI Blog2017 (3) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case and in law, the Ld. CIT(A) erred in directing the Assessing Officer to take necessary action in the year in which the liability to the tune of Rs. 33,02,000/- which was standing in the name of Shri Anand Parshuram Shetyc was created, ignoring the fact that the assessee had not been able to prove the genuineness of the liability and as such this amount was chargeable to tax u/s 41(1) of the Act in the year in which the Assessing Officer had proved that the said liability had ceased to exist. 3. In this case the A.O. observed that: i) "On perusal of the Balance Sheet, it is seen that the assessee has shown sundry creditors of Rs. 33,02,000/-. The assessee's representative vide notice u/s142(1) of I.T. Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons from the said Mr. Shetey. The appellant failed to furnish the relevant confirmations from Mr. Shetey. The A.O., thereafter, issued notice u/5.133(6) of the Act to the said Mr. Shetey but no reply nor confirmation was received from the said Mr. Shetey. Thereafter, the A.O. issued a show cause notice to the appellant dated 31.01.2013 asking the appellant to show cause as to why the said liability in the name of Mr. Shetey should not be treated as ceased to exist and added back to appellants total income. The appellant has reportedly not furnished the relevant details before the A.O. During the course of appellate proceedings, the learned counsel has stated that the disputed liability of Rs. 33,02,000/- is sub-judice before Hon'ble Bombay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued notice under section 133 (6). This remained in responded. The assessing officer proceeded to add the outstanding credit under section 41(1). Up on assessee's appeal Ld. CIT-A held that the assessing officer should add that amount in the year in which the credit arose. Hence he directed that the addition be deleted from this year. 7. Up on careful consideration we find that the assessing officer has disallowed the outstanding liability under section 41(1) only after issuing a notice under section 133(6). In this regard assessee had submitted that the matter with the creditor was in dispute and sub judice. In these circumstances in our considered opinion the assessing officer has not brought on record any cogent material to prove tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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