2014 (7) TMI 802

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....013 for assessment year 2009-10. 2. At the outset, the learned counsel for the assessee explained that the total demand, including interest, outstanding on completion of assessment was Rs. 7,19,43,460/- out of which assessee has already deposited a sum of Rs. 2,50,00,000/- on 29.03.2014 whereby resulting balance outstanding of Rs. 4,69,43,460/-. The learned counsel explained that the assessee had furnished a return of income declaring a loss of Rs. 61,63,03,140/- whereas the Assessing Officer determined the total income at Rs. 13,65,21,960/-, after making certain unsustainable additions on account of transfer pricing adjustment, disallowance of legal and professional fees, addition on account of unverified sundry creditors u/s 68 of the ....

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....its in the books of account which are in the nature of cash credit or in other words where there is actual credit of sums representing flow of money. In so far as an amount of Rs. 11,93,83,417/- is concerned, it reflects provisions created towards specific expenditure liability and does not entail any in-flow of funds and therefore the same is outside the purview of section 68 of the Act. In support of his proposition, reliance has been placed various judgements viz. : (i) Hon'ble Bombay High Court in the case of Bhogilal Virchand vs. CIT, (1980) 17 CTR (Bom) 32; (ii) Hon'ble Calcutta High Court in the case of Sikr3i & Co. (P) Ltd. vs. CIT, (1977) 106 ITR 682 (Cal); and, (iii) Hon'ble Allahabad High Court in the case of CIT vs. Bhital Das M....

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....014 was possible only after borrowing from another sister concern because the assessee had no financial capacity to deposit the said amount. In sum and substance, it is submitted that a stay be granted on the recovery of the outstanding demand and the appeal of the assessee pending before Tribunal be heard on an out-of-turn basis. 5. On the other hand, the learned 4C IT-DR has opposed the prayer of the assessee seeking stay on the recovery of the outstanding demand, though the factual matrix brought out by the learned Representative for the assessee has not been disputed. 6. We have carefully considered the rival submissions. Though the merits of the various additions shall be appropriately examined only during the course of hearing o....