2015 (5) TMI 991

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....: Shri A.V. Sreekanth, JCIT ORDER PER N.R.S.GANESAN, JUDICIAL MEMBER This appeal of the assessee is directed against the order of the Commissioner of Income-tax (Appeals), Salem, dated 28.11.2014 and pertains to assessment year 2007-08. 2. Shri T.S.Lakshmi Venkataraman, ld. Representative for the assessee submitted that the assessee is engaged in the business of dealership with M/s Hin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., it cannot be added as income u/s 41(1) of the Act. 3. On the contrary, Shri A.V.Sreekanth, ld. Departmental Representative submitted that inspite of repeated opportunities given to the assessee, the assessee could not furnish the confirmation letter from the creditor for the outstanding shown in the balance sheet as on 31.3.2007. The Assessing Officer found that the assessee had no transactio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....can recover the amount otherwise than a civil suit. In other words, the creditor has every right to recover the money whenever an opportunity comes to it outside the court of law. Moreover, the assessee accepts the liability in the balance sheet as on 31.3.2007. It is well settled principles of law that a liability if accepted in the balance sheet filed in the income tax proceedings is an acceptan....