TaxTMI 
TaxTMI 
2023 (4) TMI 457
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....rounds of appeal: "1. For that the on the facts and in the circumstances of the case, Learned CIT(A) in spite of having arrived at a definite finding that there was no cessation of remission of liability could not have restored the matter to the file of the A.O commence another innings. 2. For that the on the facts and in the circumstances of the case, Learned CIT(A) exceeded the limit of powers statutorily bestowed as per section 251(1)(a) of Income Tax Act, 1961 and grossly erred in law in restoring the case to the A.O for action in terms of impugned order dated 23rd November 2021. 3. For that appellant craves leave to add, alter, take further grounds of appeal, if necessary at the time of hearing. 4. The brief facts of the case are that the Assessing Officer during the assessment proceedings noted that the assessee had reflected sundry creditors of Rs.2,15,14,729/- payable to seven parties. The Assessing Officer has mentioned in the assessment order the details of the sundry creditors, opening balance, payment during the year, closing balance and status of the notice sent u/s 133(6) in a chart which, for the sake of ready reference, is reproduced as....
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....ectricals Iron Works] that there is no reflection of any opening or closing balance. The total sale made by the party matches with the total purchase as claimed by the assessee in his books of account. (i) From the above, it is clear that the claim made by the assessee is incorrect. Since no closing or opening balance exist in the books of account of the party [M/S Sharma Electricals the liability as claimed by the assessee in his books of account ceases to exist therefore it is a gain in the hand of the assessee, hence Rs.8,70,785/- is added back to the total income of the assessee as the liability ceases to exist. Penalty u/s 271(1)(c) is initiated for furnishing of inaccurate particulars. 9 In the case of M/S Quality Udyog, the notice issued u/s 133(6) of the I.T Act, 1961, was returned to the office of the undersigned with the remark of the post office as "UNKNOWN". The assessee was asked to furnish the name and mobile number of the person In-charge, the e-mail address of M/S Quality Udyog. The assessee said he had no contact details besides what is in the purchase bill (copy submitted). The assessee was then asked to produce the details of last trans....
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....he name, phone number, email address and other details so that the undersigned could get in contact to collect information needed, the assessee claimed he did not have any of the sought for details. From the above discussion, it is clear that the claim made by the assessee is incorrect and no liability as claimed by the assessee in his books of account exists. Hence, the total sundry creditor of Rs.21,64,314/- is added back and penalty u/s.271(1)(c) is initiated for furnishing of inaccurate particulars. 11. In the case of M/S Samanta & Brothers, the notice u/s 133(6) of the I. T. Act, 1961 was served but no reply has been received till date. However on perusal of the ledger submitted by the assessee, it is seen that during the year the assessee had made purchase of Rs. 1,91,625/- from the above party and made payment of Rs. 1,00,000/- and reflected a sundry creditor balance of Rs.91,625/- (i) On perusal of the copy of the bill submitted during the course of hearing it is seen that the assessee had received discount of Rs. 16,000/- and the actual balance for payment was reflected as Rs.75,625/-. It was also found that in the next years the assessee has pai....
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.... "6.20 In view of the above, prima facie, I am of the considered opinion that the unexplained/unmatched opening balance as well as closing balance of Rs.28,87,040/- which has been brought forward from the earlier FYs/AYS cannot be subjected to tax in the impugned AY 201415. Accordingly, the AO is directed to delete the addition subject to following conditions. 1) It is imperative on the part of the assessee to explain the year in which the said liability to the extent of Rs.27,87,040/- had originated along with details of corresponding purchases made and the FY/AY in which the said credit entries are made against the party concerned in the books of account of the assessee. 2) Also, the assessee is required to explain whether the said opening as well as closing balance of Rs.28,87,040/- has been paid to the party concerned subsequent to the end of the FY i.e., on or after 01.04.2014. If so, the details of the same such as amount paid, date of payment, mode of payment etc., shall be submitted to the AO at the time of giving effect to this order. 3) Similarly, the A.O is at liberty to examine the books of account and the return of income filed by the ....
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.... However, the AO is directed to delete the addition subject to the following conditions. 1) It is imperative on the part of the assessee to explain the year in which the said liability to the extent of Rs.15,80,550/- had originated along with details of corresponding purchases made and the FY/AY in which the said credit entries are made against the party concerned in the books of account of the assessee. 2) Also, the assessee is required to explain whether the said opening as well as closing balance of Rs. 15,80,550/- has been paid to the party concerned subsequent to the end of the FY i.e., on or after 01.04.2014 If so, the details of the same such as amount paid, date of payment, mode of payment etc., shall be submitted to the AO at the time of giving effect to this order. 3) Similarly, the AO is at liberty to examine the books of account and the return of income filed by the assessee including the Tax Audit Report u/s.44AB of the Act relating to the earlier FYs and identify the year in which the said liability to the extent of Rs. 15,80,550/- was originated by way of credit entries in the books of account of the assessee against the party concerned. ....
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....bility to the extent of Rs.21,64,314/-was originated by way of credit entries in the books of account of the assessee against the party concerned. 4) Also, the AO may carry out investigation to find out the year in which the said was paid by assessee to party concerned. While doing so, the AO may conduct necessary enquiry with the party concerned so as to find out the previous year in which the liability of the assessee had ceased to exist on account of liquidating the liability by the assessee or on account of cessation of liability as per decision taken by the party concerned, as the case may be. In case of any adverse finding, the assessee may be provided with an opportunity of being heard." 10. We further note that in respect of 5th party i.e. M/s Samanta & Brothers, neither any submission was made by the assessee before the CIT(A) nor any discussion has been made by the CIT(A) in respect of the aforesaid party. Therefore, the action of the Assessing Officer in respect of meagre addition of Rs.16,000/- seems to have not pressed by the assessee before the CIT(A). Even before us, no argument has been addressed by the counsel for the assessee in respect of the said par....