TMI Blog2020 (8) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... or current year and moreover many creditors were paid off in the subsequent year. No infirmity in the order passed by the CIT(A), hence we decline to interfere in the order passed by the CIT(A), his order on this issue is hereby upheld and the grounds of appeal raised by the Revenue is dismissed. - ITA No. 176/Ran/2019 - - - Dated:- 24-8-2020 - Shri S. S. Godara, JM And Dr. A.L. Saini, AM Appellant by : Shri A. K. Mohanti, Addl. CIT, Sr. DR Respondent by : Shri R. K. Khushal, AR ORDER Per Bench: The captioned appeal filed by the Revenue, pertaining to Assessment Year 2015- 16, is directed against the order passed by the ld. Commissioner of Income Tax(Appeals), Jharkhand in appeal No. CIT(A)/Ranchi/10754/2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sundry creditors filed by the assessee, it was noticed by the assessing officer that assessee had furnished only name of creditors and did not furnish complete address of the creditors. Age-wise analysis or the date since when the said trade liability is existing in the books of the assessee, amount paid during the year, the PAN of the creditors etc. were not furnished, before the AO. Therefore, the assessing officer held that the assessee has failed to discharge its onus to bring sufficient evidence on record to the satisfaction of the Assessing Officer regarding the genuineness of the claim of Sundry Creditors and advances , to the tune of ₹ 1,61,95,176/- in the given assessment year. Therefore, in the absence of any supporting do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 does not envisage the following: a. Doubt of the creditors and the genuity of creditors b. Satisfaction of AO regarding the genuineness and the source of sundry creditors c. Treating the trading liability as income of assessee from undisclosed sources Although the above are not envisaged in the deeming provisions of section 41(1), the AO has erroneously invoked the deeming provisions of section 41(1) for the above issues which is not legally tenable. Section 41(1) is a deeming section and deeming provision is a statutory fiction; as a rule it implicitly admits that a thing is not what it is deemed to be but decrees that for some particular purpose it shall be taken as if it were that thing. As per the statute, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al requirement and onus cast upon the appellant for establishing the genuineness of the sundry creditors as such credits have actually not appeared in books of accounts of the appellant for the year under consideration. As regards the cessation or remission of liability, the onus is on the AO to establish that the liability has either ceased or remitted especially when the appellant has stated that the liabilities were outstanding as the Balance Sheet date. In the case under consideration, there is no documentary evidence brought on record by the AO to establish that the liability in the name of any of the person appearing under the head sundry creditors, have either ceased or remitted. Moreover, during the appellate proceedings, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liability in the Balance sheet is a moving account and majority of the creditors are for current year and moreover many creditors were paid off in the subsequent year. Therefore, the AO s finding that the appellant has falsely claimed as trading liability is erroneous. 5. Aggrieved by the order of ld. CIT(A), the Revenue is in appeal before us. 6. We have heard the rival submissions and persued the materials available on record. Ld. DR for the Revenue reiterated the stand taken by Assessing Officer, whereas ld. Counsel for the assessee relied on the submissions made before the ld. CIT(A). We note that during the course of assessment proceedings, the Assessing Officer required the assessee to furnish certain details with respect t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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