2013 (6) TMI 660

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....s) has erred in confirming the action of assessing officer in making addition of Rs.1,10,935/- on account of Non existent/bogus liability. 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of assessing officer in making addition of Rs.7,560/- on account of Non existent/bogus liability. 3. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of assessing officer in sustaining addition of Rs.58,994/- out of total of Rs.61,580/- on account of unexplained difference in accounts. 4. On the facts and circumstances of the case....

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.... written off this liability in the books of account and the A.O. cannot make addition u/s.41 of the IT Act. He relied upon various case laws on Section 41(1) of IT Act. He also filed copy of account at page no.7 and 8 of the paper book of both the parties, which shows outstanding liability in case of M/s. CTX Dyestuff Ltd. at Rs.4,855/- and in case of M/s. Orbit International at Rs.1,06,080/-. At the outset, ld. Sr. D.R. heavily relied upon the orders of lower authorities and argued that the appellant had not proved this liability with any evidence for genuineness. We have considered the evidence furnished by the appellant. The position is same as was before lower authorities and the appellant had not established the genuineness of the liab....

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.... in case of M/s Bhavin Industries and verified the creditors. The appellant had shown liability in the name of M/s. Bhavin Industries at Rs.6,93,220/- & in case of M/s. Colourtex P. Ltd. Rs.13,04,340/-. There was a difference in the liability at Rs.61,580/- in case of M/s. Bhavin Industries & Rs.1,18,955/- in case of M/s. Colourtex P. Ltd., on verification of the copy of account received from both parties. The assessee has not furnished any satisfactory explanation about the difference. Thus, the A.O. made addition of Rs.61,580/- in case of M/s. Bhavin Industries & Rs.1,18,955/- in case of M/s. Colourtex P. Ltd. 7. The assessee challenged the matter before the CIT(A) who had allowed the appeal partly. The ld. CIT(A) allowed the discount ....