TMI Blog2023 (3) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the authorities below have passed a reasonable order, we do not need any interference on our part. Accordingly, we uphold the same. Appeal of the assessee stands dismissed. - ITA No. 1789/DEL/2018 - - - Dated:- 14-3-2023 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND Ms. ASTHA CHANDRA , JUDICIAL MEMBER For the Assessee : None For the Revenue : Sh. K. K. Mishra , Sr. DR ORDER PER SHAMIM YAHYA, AM, This appeal by the assessee is directed against the order of ld. CIT (Appeals)-7, New Delhi, dated 11.01.2019 and pertains to Assessment Year 2014-15. 2. The grounds of appeal reads as under:- 1. On the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in confirming t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Appeals) has erred in treating the reduction in liabilities as cessation of liability without properly appreciating the facts of the case. (iii) That the addition has been confirmed despite the fact that the amount has not been written off in the books of accounts of the assessee and hence no addition can be made under section 41(1) of the Income Tax Act. 3. Brief facts of the case are that the assessee company e-filed its return of income on 30.09.2014 for the AY 2014-15 declaring loss of Rs.2,98,367/-. The case was selected for scrutiny. Order u/s 143(3) was passed on 02.12.2016. Assessing the income at Rs.84,10,139/- after addition of Rs.2,98,367/- by disallowing the expenses incurred during the year an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e treated as cessation of liability under the provisions of Section 41 of the Act. The AO concluded that it is apparent that the advances from customers and Sundry creditors standing from earlier years were no longer liability with the appellant. Either the appellant has paid off these parties in cash or the parties have closed the account of the appellant as unrecoverable. Therefore the liability has ceased to exist under the provision of section 41 of the Act, 1961. 5.5. The appellant was asked to explain, as to why the aforesaid advances from customer and sundry creditors, static may not be treated as bogus. The appellant itself submitted to the AO and at appellate stage that it has nothing more to add other than whatever has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellant did not furnish confirmations of the sundry creditors in the first instance. The initial onus therefore, with reference to the impugned credits did not stand discharged, Due opportunity was provided by the AO by issue of a show cause notice. However, neither was any reconciliation furnished nor did the appellant file confirmation of any of the sundry creditors, The lad. AR was also provided opportunity to furnish reconciliation and confirmation of balances during appellate proceedings. However, except for simple assertions that the transactions were entered in regular course of business, no documentation or evidence in support of the impugned credits was furnished. Admittedly, in the body of the assessment order, the AO has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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