TMI Blog2021 (12) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not in dispute that all these sundry creditors have a valid PAN. All these sundry creditors have been duly discharged by the assessee in subsequent assessment years. We also find as on 31/03/2015, the assessee had not written back the sundry creditors to its income as no longer payable, hence, the liability had not ceased to exist and assessee had duly acknowledged his debt payable to these sundry creditors. Hence, in these circumstances, in any case, irrespective of the payments made in subsequent years, the provisions of Section 41(1) could not come into operation at all. These points have been duly appreciated by the ld. CIT(A) and hence, we do not find any infirmity in the order of the ld. CIT(A) granting relief to the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 2,62,98,194/- in respect of eight parties. The ld. AO issued show-cause notice to the assessee to confirm the sundry creditors as per Balance Sheet. The ld. AO also sought to issue independent notice u/s.133(6) of the Act to the sundry creditors totalling to ₹ 2,07,90,576/- in respect of six creditors as under:- Name Amount M/s. Bahubali Diamond 30,44,787 M/s. Mona Gems 42,29,572 M/s. Sangham Diamonds P. Ltd 40,90,969 M/s. Parul Diamonds Pvt. Ltd., 55,26,274 M/s. Shree Bhairav Diamonds P. Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogether 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 decisions. The ld. CIT(A) gave a categorical finding in his order stating that the assessee had not written back to income the sundry creditors payable in its books, hence, the liability payable to these sundry creditors had not ceased to exist. The ld. CIT(A) also observed that from the ledger account of the sundry creditors produced by the assessee, it could be seen that the sundry creditors are related to the new purchases made in the preceding previous year an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21/12/2015 18,92,674 38 27,92,674 M/s. Rajshree Impex 11,06,300 02/01/2016 11,06,300 40 3.3. We also find as on 31/03/2015, the assessee had not written back the sundry creditors to its income as no longer payable, hence, the liability had not ceased to exist and assessee had duly acknowledged his debt payable to these sundry creditors. Hence, in these circumstances, in any case, irrespective of the payments made in subsequent years, the provisions of Section 41(1) of the Act could not come into operation at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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