2012 (12) TMI 1085

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.... Income Tax Act, 1961 assailing order of Income Tax Appellate Tribunal, Jaipur dated 20.05.2011 for the assessment year 2007-2008. 2. The appellant as alleged is a partnership firm and had purchased goods from M/s Tirupati Steels during the financial years 2001-2002 & 2002-2003. However, it is alleged that on account of short supply and period calculated there was a dispute between the appellant-....

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.... ascertain the genuineness of the trade liability notice under Section 133(6) of the Act of 1961 was issued requiring complete copy of the account of the appellant-firm for the financial year 2006-2007 as appearing in the books of accounts of M/s Tirupati Steels. But it was reported that no such entity existed on the given address of M/s Tirupati Steels and accordingly the assessment was made afte....

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.... could not be held that amount cannot be added u/s 41(1) of the Act. However while remitting it was left open for the assessing authority to verify the discharge of liability till the date of fresh assessment and if the liability has been discharged till date then there will be remission or cessation of the liability and if the assessee fails to produce the creditor or unable to give the exact add....