2019 (5) TMI 1204

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....e assessee filed returns for the assessment year 2011-12. The returns filed was selected for scrutiny and notice under Section 143(2) of the Income tax Act, 1961 (hereinafter referred to as 'the Act' for short) was issued. In pursuance of the said notice, a representative of the assessee appeared before the Assessing Authority. The assessee was asked to explain sundry creditors which were continued in the books of accounts without any change. The assessee was specifically asked to explain why the unclaimed credit balance should not be brought to taxation. The Assessing Officer not being satisfied with the explanation furnished by the assessee brought to tax a sum of Rs. 2,52,71,577/-. Aggrieved by the assessment order, the assessee filed ap....

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....ial question of law. In the case on hand, the assessee filed returns for the assessment year 2011-12. The case of the assessee was selected for scrutiny and notice was issued under Section 143(2) of the Act on 06.08.2013. Subsequently, notice dated 24.02.2014 was issued asking the assessee to explain sundry creditors which have been continued in the books of accounts without any change. He was also asked to explain why the unclaimed credit balances should not be brought to tax invoking Section 41(1) of the Act. The assessee submitted his explanation with regard to sundry creditors. The Assessing Authority on the ground that the assessee has not furnished PAN numbers or address of the creditors brought to tax an amount of Rs. 2,52,71,577/-. ....

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.... has been made is in existence in that year or not; or (b) the successor in business has obtained, whether in cash or in any other manner whatsoever, any amount in respect of which loss or expenditure was incurred by the first-mentioned person or some benefit in respect of the trading liability referred to in clause (a) by way of remission or cessation thereof, the amount obtained by the successor in business or the value of benefit accruing to the successor in business shall be deemed to be profits and gains of the business or profession, and accordingly chargeable to income-tax as the income of that previous year. Explanation 1:- For the purposes of this sub-section, the expression "loss or expenditure or some benefit in....