9911796707
TMI Blog2021 (12) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... r-19(1)(1), Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in deleting the addition made in sum of Rs. 207,90,576 u/s.41(1) of the Act on account of cessation of liability, in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. We find that assessee is an individual carrying on the business of dealing and manufacturing of cut and polished diamonds and had filed his return of income for the A.Y.2015-16 on 30/09/2015 declaring total income of Rs. 13,25,010/-. During the course of scrutiny assessment proceedings, the ld. AO on perusal of the balance sheet observed that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(1) of the Act could not be made applicable to the facts of the instant case. It was also pointed out that all these parties had valid PAN and in view of severe depression in diamond market and insolvency of numerous parties, several parties had shut down their businesses and shifted their place of business. It was also pointed out that except for M/s Sangham Diamonds having outstanding balance of Rs. 40,90,969/-, the assessee had furnished the confirmation together with the ledger account of all the remaining creditors. The assessee also placed reliance on the decision of the Hon'ble Apex Court in the case of CIT vs. Sugauli Sugar Works Pvt. Ltd, reported 236 ITR 518, CIT vs. Kesaria Tea Co. Ltd., reported in 254 ITR 434, among other deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly discharged by the assessee in subsequent assessment years as under:- Name of Creditor Amount outstanding on 31/03/2015 Amount Paid Bank Statement at Pg. No. Date Amount Bahubali Diamond 30,44,787 07/09/2016 30,44,787 16 Mona Gems 42,29,572 06/04/2016 4,32,830 18 07/09/2016 5,50,000 19 26/12/2016 9,50,000 20 26/12/2016 10,50,000 20 28/12/2016 12,46,742 21 42,29,572 M/s. Sangham Diamonds 40,90,969 17/07/2015 15,00,000 25 03/08/2015 15,00,000 25 06/04/2016 10,90,969 26 40,90,969 M/s. Parul Diamonds Pvt. Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X
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