TMI Blog2013 (5) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... d dated 20/12/2012 for the assessment year 2007-08. 2. The only grievance of the revenue in this appeal is against the action of the CIT(A) in deleting the addition made by the AO towards cessation of liability u/s 41(1) of the IT Act, 1961. 3. Though notice of hearing before us has been duly served, none appeared for the respondent-assessee. Therefore, I proceed to dispose of the appeal aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase bills and invoices and ledger account of Amar Electronics in the books of the creditors as on 31/03/2007. After considering the details furnished by the assessee and on verification of the purchase bills of the current year, it was found that the assessee did not have any transactions with these parties in the previous year relevant to assessment year. Therefore, the assessee was issued a no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as per the details furnished by the assessee. When the notices were issued to the creditors, it was found that the addresses and telephone numbers of creditors provided by the assessee were not correct addresses and phone numbers and, therefore, the whereabouts of the creditors could not be traced. In view of these facts, the AO came to the conclusion that the outstanding amounts were nothing bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pported the order of the AO and relied upon the findings of the AO. 8. Having heard the learned DR and having considered the material on record, I find that the only basis for making addition u/s 41(1) of the Act by the AO is the presumption by him that the liability of the assessee under sundry creditors has ceased to be liability due to long duration of time after the credit became a liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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