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2017 (3) TMI 253 - ITAT MUMBAI

2017 (3) TMI 253 - ITAT MUMBAI - TMI - Addition u/s 41 - creditor was in dispute - Held that:- 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 th .....

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ri. Rajesh Kumar Yadav Revenue by : Ms. Neelam Jadhav ORDER Per Shamim Yahya This appeal by the assessee is directed against order of CIT-A dated 22.12.2013 and pertains to assessment year 2010-11. 2. The grounds of appeal read as under: On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in allowing relief to the assessee to the extent impugned in the grounds enumerated below: 1. On facts and circumstances of the case and in law, the Ld. CIT(A) erred in di .....

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: i) On perusal of the Balance Sheet, it is seen that the assessee has shown sundry creditors of ₹ 33,02,000/-. The assessee's representative vide notice u/s142(1) of I.T. Act, 1961 dated 19.11.2012 was asked to furnish the confirmations in respect of sundry creditors of ₹ 33,02,000/-. ii) The assessee has not furnished the confirmations in respect of sundry creditor of Mr. Anand Parshuram Shetey for ₹ 32,18,500/-, instead stated that the matter is sub-judiced and in suppor .....

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above said sundry creditor. Therefore, the onus is on the assessee to furnish the confirmations in respect of sundry creditors of ₹ 3,02,000/- but the assessee has failed to furnish the same, therefore, the amount of sundry creditors of ₹ 33,02,000/- are treated as seized to exist u/s. 41(1) of I.T. Act and added back to assessee s total income for the year under consideration. 4. Up on assessee s appeal Ld. CIT-A decided the issue as under; i) I have carefully and dispassionately c .....

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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 ₹ 33,02,000/- is sub-judice before Hon ble Bombay High Court. A perusal of the relevant arbit .....

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. No material nor evidences are placed before me to prove the creation of liability in the previous year relevant to A.Y.2010-11. Having regard to facts and circumstances of the case, the A.O. is directed to take necessary action in the year of liability. In case the said liability has been created in the previous year relevant to A.Y.2010-11, only then the addition of ₹ 33,02,000/- will be confirmed otherwise the said liability cannot be added in the A.Y.2010-11 and have to be deleted in .....

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