2013 (4) TMI 638

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....led this appeal for assessment year 2007-08 against order dated 22.11.2011 of ld CIT(A) -21, Mumbai on following grounds:- "1. On the facts and in the circumstances of the case and in law, ld CIT(A) erred in deciding the existence of liability which is of three years having aware of the fact that closing stock & opening stock is same in the year under consideration and also assessee has no tran....

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....essment proceedings, the Assessing Officer noticed that assessee has shown sundry creditors at Rs.36,41,465/-. AO also noticed that some of the creditors stands at Rs.28,35,063 and appearing in the books of account of the assessee for a period of more than three years. Before the AO, it was submitted by the assessee that there is no transaction with those creditors and liability genuinely exists. ....

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....e business of the firm wherein the sundry debtors and creditors are outstanding for a period exceeding 3 years was discontinued due to losses and the sundry creditors are outstanding only due to non- availability of sufficient funds. Reliance was placed on the decisions of Mumbai ITAT in the case of DSA Engineers vs ito, 30 SOT 31 and Delhi ITAT in the case of Shri vardhaman Overseas ltd 24 SOT 39....

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....as Ltd vs. ACIT (supra). He submitted that it was the brought forward sundry creditors and the income of which had been offered for taxation in the respective assessment years. He further submitted that assessee has not written off the said liability and, therefore, provisions of section 41(1) are not applicable as held by ld CIT(A). 5. We have considered submissions of ld representatives of pa....