AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 549
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....ainst the penalty being deleted by Ld. CIT (A)-15 vide order dated 22/09/14 for Assessment Year 2010- 11 on the following grounds of appeal: ITA No. 6776/del/2015 (assessee's appeal against quantum proceedings) "1. The Ld CIT (A) has erred on facts and circumstances of the case in making disallowance of sundry creditors Rs. 5,77,00,706/- under section 41(1) as creditors are being paid in subsequent years and details are part of department records submitted during scrutiny assessment u/s 143(3) in the previous years. 2. Ld.DCIT, circle 12(1) and Ld CIT (A) has erred on facts and circumstances of the case in making disallowance of other liabilities Rs. 12,17,23,144/- under section 41(1) as the same are being settled....
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....the Ld.CIT(A) erred in deleting the penalty ignoring the facts that the assessee is not in appeal against the addition made in regular assessment." CO/183/Del/2017 (Cross Objection by assessee against penalty order) "That the ld.AO has erred in law and facts by passing an order of penalty u/s 271(1)(c) of the Income Tax Act, 1961 which is bad in law as the notice issued u/s 274 r.w. section 271 of the Act does not discern as to whether the penalty proceedings was initiated for furnishing of inaccurate particulars of income or concealment of income under the facts and in the circumstances of the appellant's case and therefore, the impugned order passed deserves to be cancelled." 2. Brief facts of the case are as under: ....
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....nufacturing of Vanaspati, refining and packing of imported edible oil for PDS and manufacturing of breakfast cereal. Assessee was then referred to BIFR in the year 1999 and in the year 2000 the government decided to inform BIFR that it did not consider feasible to attempt its revival. In September,2006 Government submitted to Hon'ble Delhi High Court that it was willing to explore the possibility of hiving off Break Fast Food Unit (BFFU) and reviving it under a joint-venture. It was indicated by government that outside liabilities (other than government liabilities) of assessee could be settled through sale of movable assets of assessee of loss units. 3.1. As regards immovable assets of assessee (which constitutes land in prime locations....
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....d other liabilities as existed as on 31/03/09 were examined by Assessing Officer and the new creditors that added for the current year amounted to Rs. 9,64,794/-. It is observed that Assessing Officer completed the assessment proceedings by disallowing entire amount of liabilities without considering the fact that the opening balances of the liabilities were already admitted in the immediately preceding Assessment Years. Assessee has placed the assessment order for the preceding Assessment Year before us for verification of the same. Further it is observed that the claim has been filed before BIFR and therefore the same cannot be considered to have been ceased. It is only a matter of timing that as the issue is pending before BIFR, the cred....
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....ot able to make regulatory compliance. In view of this, the AR requested for allowing condonation of delay in filing of appeal. I have carefully considered the facts of the case. In view of the state of affairs of the company, which is a Public Sector Undertaking of Ministry of Food and Civil Supplies and is under closure, I condone delay in filing this appeal. 6.4 The Ld. AO has held the addition made by the Ld. AD in the assessment order as evidences of filing of 'inaccurate particulars of income'. The appellant did not file any appeal against the said order of assessment. However, evidently there was a scrutiny assessment in the immediately preceding year i.e. AY 2009-10, during the course of which, 'sundry creditors....
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....or A.Y. 2009-10. 6.6. The Ld.AO has himself held that there is no 'concealment of income'. Moreover, these details are reflected in the annual accounts which are attached to the return of income, a copy of which was also filed before me. The Ld. AO has not been able to identify any liability that may have ceased to exist but has made summary disallowance of all sundry liabilities and sundry creditors without even verifying the facts from the assessment records for AY 2009-10. The facts and figures given in the annual accounts have not been established to be incorrect in any manner, as the Ld. AO has not carried out any enquiry, whatsoever, for verifying the same. Moreover, the appellant has not written off these liabilities in its ....