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TMI Blog2020 (1) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... reinafter referred to as 'The Act'] treating the outstanding as cessation of liability. 3. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings, the assessee was asked to furnish complete details of sundry creditors. The assessee furnished details of sundry creditors which were as under: Name of the Creditors Amount I Arizona Ceramics 9768 Arun Agencies 2277 Asian international 8594 Bansal insulation & mica hou 3321 Cal tex lubricants India limited 1226 Diamond electrical 1823 Egl-Eagle Global logistics 110204 Era Tech Builder s I Ltd 119568 Exactway water proof co 9200 General composites p ltd 7741 Haryana Indl, Security services 38812 Jyoti Electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. 9. Per contra, the ld. DR strongly supported the findings of the lower authorities. 10. We have given thoughtful consideration to the orders of the authorities below. It is not in dispute that the creditors were outstanding for more than three years. In our considered opinion, merely because the period of limitation prescribed under the Limitation Act has expired, would not extinguish the debt. For this proposition, we draw support from the decision of the Hon'ble Supreme Court in the case of CIT Vs. Sugauli Sugar Works P. Ltd 236 ITR 518 has held as under: "The assessee had obtained, whether in cash or in any other manner whatsoever any amount in respect of such loss or expenditure or some benefit in respect of such trading li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Rs. 4,17,252/-. Ground Nos. 1 to 3 are allowed. 12. Next substantive grievance relates to the addition of Rs. 3 lakhs out of total advertisement and marketing expenses of Rs. 1,19,49,371/-. 13. The underlying facts in this issue are that the assessee was asked to furnish the details of advertisement and marketing expenses and to produce books of account alongwith supporting documents and vouchers. 14. On perusing the details furnished by the assessee, the Assessing Officer found that some of the expenses were paid in cash and in respect of some other expenses, bills/vouchers were not properly maintained by the assessee. The Assessing Officer, accordingly, made addition of Rs. 3 lakhs. 15. The assessee carried the matter before th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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