2017 (5) TMI 414

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....d CIT(A) arising from the assessment order dated 20th February, 2015 passed by learned Assessing Officer ( hereinafter called " the AO") u/s 143(3) of the Income-tax Act,1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal") read as under:- "1.1 The learned Commissioner of Income Tax (Appeals) - 21 , Mumbai ["the Id. CIT (A)"], erred in holding that the assessment is not time barred. 2.1 The Id. CIT (A) erred in confirming addition of Rs. 2,02,403/- being sundry creditors (i.e. Ajanta Enterprises Rs. 75,762 and Calyx Chemicals & Pharmaceuticals Rs. 1,26,641) outstanding for last four years, to the total....

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....ow compass. The assessee was showing certain sundry creditors in its balance sheet as at 31-03-2012 , hence, the assessee was asked by the AO to the submit the details and from the details submitted by the assessee, the A.O. observed that the following parties , inter-alia, are appearing as its sundry creditors for the last four years and the dispute between the Revenue and the assessee is now w.r.t. these under mentioned parties:- (In Rupees) Sr No. Name of the party Amt in 2011-12 Amount in 2010-11 Amount in 2009-10 Amount in 2008-09 1 Ajanta Enterprises 75,762 75,762 75,762 75,762 2 Calyx Chemical and Pharmaceutical 1,26,641 1,26,641 1,26,641 1,26,641   No explanation was submitted by the assessee w.r.t. above c....

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....bility has arisen on account of raw material purchased by the assessee from the said parties in the earlier years against which no payment have been made by the assessee. It is submitted that there was no cessation of liability as at 31-03- 2012 and existence of outstanding credit in assessee's books of accounts is an acknowledgement of debt payable by the assessee which cannot be treated as cessation of liability of the assessee chargeable to tax u/s 41(1)(a) of 1961 Act. It is also submitted by learned counsel for the assessee that the assessee has written back/adjusted the said amount and offered the same for taxation in the assessment year 2015-16 which can be verified by authorities below, which were existing as outstanding to be payab....

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....e not made by the assessee to these parties. The assessee did not gave explanation before the authorities below nor filed any confirmations , but now has claimed before the tribunal that purchases were genuine/bonafide and these liabilities were outstanding to be payable as at 31-03-2012 which were reflected in books of accounts and there were no cessation of liability. The assessee has also claimed before us that the assessee had already offered the said amount for taxation in the assessment year 2015-16. The contentions of the assessee about genuineness/bonafide of purchases as well that these two accounts stood adjusted/written back and the income was offered to tax in assessment year 2015-16 , for which necessary verification needs to b....