9911796707
TMI Blog2025 (5) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... late Tribunal [ITAT] in ITA No. 3536/Del/2016 in respect of assessment year [AY] 2007-08. 2. The impugned order is a common order passed by the learned ITAT in ITA No. 3297/Del/2016 and ITA No. 3536/Del/2016. These were cross appeals arising from an order dated 18.03.2016 passed by the Commissioner of Income Tax (Appeals)-XVI, New Delhi [CIT(A)]. Whereas ITA No.3297/Del/2016 was preferred by the Assessee, ITA No. 3536/Del/2016 was preferred by the Revenue. It is material to note that the present appeal is confined to the impugned order relating to ITA No. 3536/Del/2016, which arises from the Revenue's appeal against an order dated 18.03.2016 passed by the CIT(A). 3. The appeal before the learned ITAT emanated from the assessment order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed income of the Assessee. 6. Additionally, the AO also made further additions of Rs. 19,60,075/- in respect of difference between the opening and closing balance of the unsecured loans; Rs. 13,46,800/- on account of cessation of liability; Rs. 1,40,00,000/- on account of the unexplained deposit from one Sh. Ashok Kumar Verma; Rs. 29,28,497/- on account of disallowance of interest on account of interest free funds advanced to a related company, Harsha Buildcom Pvt. Ltd.; Rs. 32,80,669/- on account of unexplained advances received from customer; Rs. 3,80,156/ on account of disallowance under Section 40A (3) of the Act. 7. The Assessee appealed the assessment order before the CIT(A). 8. During the appellate proceedings, the Assessee produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of liability of Rs. 2,46,880/- and the deletion of addition of Rs. 12,92,241/- received from Sh. Jagdish Kumar and Sh. Avinash Kumar (Ground Nos.2 and 3). However, in respect of the challenge to the deletion of an addition of Rs. 4,44,12,989/-, the learned ITAT partly allowed the Revenue's appeal, and sustained the challenge to the extent of deletion of Rs. 4,39,22,918/-. 11. The learned ITAT found that the Assessee had failed to establish the liability of Rs. 67,43,549/- reflected as payable to Bank of Baroda and Rs. 3,71,79,369/- reflected as payable to the Punjab National Bank. 12. In the aforesaid context, the Assessee has projected the following questions for consideration of this court: "I. Whether the finding of ITAT that reversa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT vs. Ritu Anurag Aggarwal" [ITA No. 325/2008 dated 22/07/2009] wherein it has been held that the question of addition on account of sundry creditors u/s 68 of I.T. Act does not arise once the purchases and the trading results have been accepted by the AO? V. Whether the confirmation/restoration of the order of AO by ITAT with regard to addition of Rs. 4,39,22,918 on account of liability, is directly against the law laid down by the High Court of Calcutta in the case of "Pr. CIT Vs. Abhijeet Enterprise Ltd." [ITAT 187/2023 dated 17.11.2023 as corrected by order dated 20.12.2023] where there is merely a notional entry and there is no actual receipt of sum of money by the Appellant, question of inclusion of the amount of notional entry as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not presented, the same would continue to be a liability. 16. As is apparent from the above, the question whether the debts reflected as payable to the banks are genuine or fictitious is a pure question of fact. 17. In the present case, it is conceded that the books of account reflected inflated outstanding in excess of the statement of accounts furnished by the Bank of Baroda and Punjab National Bank. The cheques claimed to have been issued by the Assessee, on account of which the Assessee's books reflected a higher outstanding, were not presented in FY 2007-08 as well. Thus, in fact, these cheques were never presented to the concerned banks. 18. The account maintained with Punjab National Bank was an escrow account (and not an overd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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