2025 (7) TMI 1906

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....ax Act, 1961 (hereinafter referred as 'the Act') dated 22.09.2022. 2. The assessment in this case was completed by the assessee u/s 143(3) r.w.s. 144B of the Act dated 22.09.2022 after making an addition of Rs. 34,45,60,149/- u/s 41(1) of the Act in respect of outstanding balance of sundry creditors resulting in demand (tax liability) of Rs. 15,51,70,840/-. The assessee in its stay application submitted that out of the said amount of Rs. 15,51,70,840/-, an amount of Rs. 3,17,45,777/- being 20% of the outstanding demand was paid (Rs. 25 lakhs on 29.03.2023 and Rs. 2,92,45,777/- on 28.02.2024) and produced the necessary challan in support of the same. 3. The Assessing Officer while making the above addition....

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....er completion of the assessment, the PCIT-1, Agra issued a show-cause notice dated 27.11.2024 u/s 263 of the Act, wherein, after noting the finding of the Assessing Officer, he observed that it could easily be inferred that against bogus liabilities of Rs. 34,45,60,149/- unexplained assets of same amount of Rs. 34,45,60,149/- were adjusted by the assessee and hence the addition of Rs. 34,45,60,149/- should have been made by the Assessing Officer u/s 68 r.w.s. 115BBE of the Act, which was not done by the Assessing Officer making the assessment erroneous and prejudicial to the interest of the Revenue. The Ld. AR submitted that the assessee in response thereto filed a reply dated on 11th December, 2024 and further submitted by f....

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....vide show-cause notice dated 27.11.2004 was dropped then also the addition of Rs. 34,50,60,149/- made by the Assessing Officer and confirmed by the Ld. CIT (A) stands as on date. Thus, there is an outstanding tax demand of Rs. 11,98,25,063/- in the case of the assessee after the payment of Rs. 3,17,45,277/- being 20% of the demand of Rs. 15,51,70,840/- raised vide order u/s 143(3) r.w.s. 144B dated 22.09.2022. The perusal of the assessment order and the order of the Ld. CIT(A), notes the fact that mere submission of invoices/bills does not prove the existence of liability and that the identity of the creditors and their confirmations was not submitted by the assessee. Further, the Assessing Officer also noted the fact th....