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TMI Blog2016 (6) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... d creditors, ignoring the fact that the assessee had failed to prove the genuineness of the creditors." 2. The facts narrated by the Revenue Authorities are not disputed by both the parties, therefore, the same are not repeated here for the sake of convenience. 3. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal. 4. At the time of hearing, Ld. Counsel of the Assessee Sh. Ashish Chadha, Advocate stated that the quantum on which the penalty has been imposed, has already been deleted by the ITAT. Ld. CIT(A) by following the order of the ITAT order dated 26.8.2013 has rightly deleted the penalty in dispute, therefore, impugned order may be upheld. He has also filed the copy of the order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability of the assessee........" 12. However, since undisputedly, the amounts are still outstanding, it cannot be said that they have been either written off or squared off or that any benefit has been derived by the assessee. For doing so, the provisions of Section 41 (1) of the Act are also not attracted and no addition therein is envisagable. Then, the amounts in question pertained to sundry creditors of the assessee, they being on account of purchases of the assessee. As such also, no addition is called for, since the purchases or the sales have not been disputed by the Assessing Officer. Thus, in keeping with 'CIT vs. Pancham Das Jain', 205 CTR (All) 444, no addition is called for. Then, in the books of account of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 passed by this Bench (authored by the JM) in the case of 'M/s Divine International' for Assessment Year 2001-02, in the case of the assessee these creditors represent the outstanding amount on account of the purchases. There can be three alternative allegations against the assessee. One can be that these credits represent the credit for earlier years. If that be the case, no addition can be made in this year under Section 68 of the Act. The second allegation can be that these credits represent the purchases for which payments have been made by the assessee during the year itself. If this is so, the onus will be on the department to establish that assessee has made payment to these creditors. This is not even the allegation of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has adjudicated the issue in dispute vide para no. 4.00 at page no. 3 of the impugned order dated 12.9.2013. For the sake of convenience, we are reproducing the para no. 4.00 as under:- "4.00 I have gone through the submissions made by the appellant and the arguments advanced during the course of appellate proceedings. There is no gainsaying the fact that the Hon'ble Delhi 'H' Bench, New Delhi vide ITA No. 5856/Del/2012 dated 26.8.2013 pronounced its judgment in favour of the appellant as is apparent from the relevant extract of its order quoted in italics above. Para 11 of the Hon'ble ITAT's order was also referred to whereunder it was held by the Hon'ble ITAT that the sundry creditors reflected in the books of account of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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