9911796707
TMI Blog2018 (6) TMI 1611X X X X Extracts X X X X X X X X Extracts X X X X ..... n industry. In the course of assessment proceedings u/s. 143(3) of the Act, the AO noticed that there were creditors appearing in the balance sheet of the assessee which was not paid by the assessee for a long time. It is not disputed that the credits in the balance sheet were opening balances of the earlier years and there was no transaction during the previous year. The creditors appearing in the balance sheet which was added by the AO were as follows:- Rs . a. Bharath Cement Products - RMC Division 1,23,02,913 b. Bharath Blue Metals - Sale of Jelly 14,59,747 c. B.T. Nagaraj Stone Crusher Works 52,44,166 d. Bharath Cements Products - Cement Blocks 28,00,000 e. B.T.N. Transports 34,64,751 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny amount in respect of which loss or expenditure was incurred by the first-mentioned person or some benefit in respect of the trading liability referred to in clause (a) by way of remission or cessation thereof, the amount obtained by the successor in business or the value of benefit accruing to the successor in business shall be deemed to be profits and gains of the business or profession, and accordingly chargeable to income-tax as the income of that previous year. Explanation 1.- For the purposes of this sub-section, the expression "loss or expenditure or some benefit in respect of any such trading liability by way of remission or cessation thereof" shall include the remission or cessation of any liability by a unilateral act by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no material evidence to show that liability of the assessee in respect of the aforesaid creditors was either remitted or ceased to exist. The following were the conclusions of the CIT(Appeals):- "Having considered the details furnished and the Written submissions made by the Assessee and the after hearing the arguments of the AR I am of the opinion that the decision of the Hon'ble Supreme Court in the case of CIT v/s. Sugali Sugar Works Pvt Ltd., (1999) 236 ITR 518 (SC) followed by the Jurisdictional ITAT's order dt: 26-07-2013 in the case of ITO Ward - 6(1) v/s. M/s Cauvery Concrete Products in ITA No. 641/Bang/2012 is clearly applicable to the facts of the Appellant's case. The AO has not brought any supporting ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds may be reversed and that of the Assessing Officer may be restored. 5. The appellant craves leave to add, alter, amend and / or delete any of the grounds that may be urged." 7. The ld. DR relied on the order of the AO and reiterated the stand of the revenue as reflected in the grounds of appeal before the Tribunal. 8. The ld. Counsel for the assessee submitted that the CIT(Appeals) did not give relief to the assessee on the basis of additional evidence filed by the assessee and the grounds of appeal projected by the revenue are misconceived. 9. We have given a very careful consideration to the rival submissions. The AO after noting several liabilities in the form of sundry creditors existing in the balance sheet for a long t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
