9911796707
TMI Blog2022 (9) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) erred in deleting the loss from share market and commodity market amounting to Rs. 4,84,06,022/- without appreciating the detailed reasons given by the AO and without appreciating that the above loss is contingent in nature as the assessee has not admitted its liability. 2. On the facts and circumstances of the case the Ld. CIT(A) erred in deleting the addition of Rs. 1,17,18,396/- made u/s. 41(1) on account of cessation of liability from three creditors without appreciating the detailed reasons given by the AO and without appreciating that the assessee failed to furnish their confirmations or address and the assess failed to produce the books of accounts. 3. On the facts and circumstances of the case the Ld. CIT(A) erred in de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order, the assessee has preferred the Appeal before CIT(A). The Ld. CIT(A) partly allowed the Appeal by deleting the loss from share market and commodity market amounting to Rs. 4,84,06,022/-, deleted the addition of Rs. 1,17,18,396/- made u/s. 41(1) of the Act on account of cessation of liability from three creditors. Further also deleted an addition of Rs. 3,30,47,364/- made on account of receipt of payments for rendering services. 6. Aggrieved by the order dated 15/11/2018, the Department has filed the present Appeal on the grounds mentioned above. 7. Ground No. 1 The Ground No. 1 of the Revenue is in respect of deleting the loss from the share market and commodity market amounting to Rs. 4,84,06,022/- which was made by the A.O. ig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial Court at Bengaluru. Accordingly, the Ground No. 1 of the Revenue is allowed for statistical purpose. 11. Ground No. 2 of the Revenue is in respect of deleting the addition of Rs. 1,17,18,396/- made u/s. 41(1) of the Act on account of cessation of liability from three creditors. The Ld. A.O. by invoking the provisions of Section 41(1) made addition in respect of existing liabilities with regard to three creditors/deposits aggregating to Rs. 1,17,18,396/-. On the ground that creditors were lying static for more than three years and that resulted in cessation of liability. It is admitted fact that the said amount has been by the assessee as the creditor in the books of accounts and also reflected in the balance sheet. The balance shee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Repair and Other Taxable Services aggregating to Rs. 1,28,16,229/- is duly recognized in the books of account of the appellant. Out of the alleged amount an amount of Rs. 62,10,443/- is recognized as income in the Profit and Loss account and the balance amount of Rs. 61,73,694/- is recognized as advance from customers. Further, the appellant had work contract receipts of Rs. 2,02,31,135/- as per the Service Tax return. However, as against the receipts of Rs. 2,02,31,135/- the appellant had recognized revenue of Rs. 16,42,51,884/- and explained that the receipts are recognized as advances from customers and revenue is recognized in the books of account as per Accounting Standard on percentage of completion of projects." 13. It is speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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