9911796707
TMI Blog2016 (6) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 12.9.2013 passed by the Ld. Commissioner of Income Tax (Appeals)-XXV, New Delhi pertaining to assessment year 2009-10 on the following ground:- On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the penalty u/s. 271(1)(c) of the I.T. Act, 1961 levied on account of unexplained 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urmise that the Ld. CIT (A) has observed that: ..the above four trade creditors has not demanded any money from the assessee for a long time and it is also apparent that the above four parties would have squared off or written off the balances in the name of the assessee and, as such, there is a remission or cessation of 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 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer has to take into account the overall facts. In the present case, as discussed, on considering the facts of the case, the provisions of Section 68 of the Act are not attracted and considering the overall facts, no addition is called for under the Section. 13. Further, as considered in the order dated 30.09.2011 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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration also. 16. For the above discussion, finding the grievance sought to be raised by the assessee in this regard to be justified, we accept the same. Accordingly, the order of the Ld. CIT (A) on this issue is cancelled an the Assessing Officer is directed to allow the claim of the assessee. 5.1 We also find that Ld. 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 Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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