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TMI Blog2023 (6) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 to 4 is against the deletion of addition of Rs.6.00 crore, which was made by the Assessing Officer (AO) u/s.68 of the Act towards unexplained share capital. 3. Briefly stated, the facts of the case are that the assessee filed its return declaring Nil income, after set off of brought forward loss of Rs.41,39,617/- against the current year's income. The AO issued various notices, which remained unresponded. Eventually, the assessment order was passed u/s.144 of the Act. The AO observed that the assessee received fresh share capital amounting to Rs.6.00 crore. In the absence of the assessee participating in the assessment proceedings or furnishing any evidence in support of the claims, the AO made the addition of Rs.6.00 crore u/s.68 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose opening balance was Rs.1.69 crore and a sum of Rs.1.60 crore was transferred to share application money. Page 137 is a copy of account of Suresh Trading Company. The opening balance was Rs.1.26 crore and a sum of Rs.1.00 crore has been transferred from this account to share application money as on 31-03-2013. Page 134 is a copy of account of A1 Bottles Suppliers, having opening balance of Rs.1.15 crore out of which a sum of Rs.1.00 crore has been transferred to share application money on 31-03-2013. Similar is the position regarding the transfer of balances from Oriental Containers Ltd., Reliable Bottles Co., Pooja Trading Company and KSD Traders for a sum of Rs.1.00 crore, Rs.50.00 lakh, Rs.45.00 lakh and Rs.45.00 lakh respectively. Fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the AO u/s.41(1) of the Act. This section gets triggered on cession of trading liability. If the amount is still payable and the assessee admits the liability to pay, no addition can be made under this provision. Here is a case in which the assessee categorically admitted before the ld. CIT(A) that the accounts with these suppliers/creditors were running and continuous. Noting has been brought on record to controvert this submission of the assessee. If the accounts are running and continuous and the assessee admits the amounts still to be payable, obviously section 41(1) cannot be invoked. We, therefore, accord our imprimatur to the view expressed by the ld. CIT(A) on this score. This ground fails. 7. The only other issue raised by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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