9911796707
TMI Blog2013 (11) TMI 1674X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal ) dated 5.04.2013 passed in ITA No.1698/AHD/2010 for AY 2009-10, the revenue has preferred present appeal with the following proposed substantial question of law. 2. The facts leading to the present appeal in nutshell are as under: 2.1 That the assessee is the proprietor of M/s. Shri Rajaram Dhanvarsha Exports, in which, she has carried out the business of wholesale of cotton grey fabrics. During the year under consideration, the assessee shown sales of ₹ 2,76,12,707/- from which she has shown net profit of ₹ 2,72,427/- @ 0.99%. The assessee filed return of income for the assessment year under consideration declaring a total income at ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on test check basis as to whether the creditors has been paid off in the subsequently years. It was found by the Assessing Officer from the ledger account of the subsequent years that the creditors had not been paid off except in the cases of M/s. Siranjeevi Textiles, Pakladom and Shri Vaishno Fab, Isanpur where partial payments were made in subsequent years. The assessee was also required to furnish addresses of such creditors. On the basis of the address supplied by the assessee, notice under Section 133(6) of the Income Tax Act were issued to 11 creditors calling upon for ledger account confirmations. With respect to 14 creditors referred to para 5.7 of Assessment Order, it was found that an amount of ₹ 51,37,327/- were outstandin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sugauli Sugar Works (P.) Ltd. [1999] 236 ITR 518 and the decision of this Court in the case of CIT v. Nitin S. Garg [2012] 208 Taxman 16, the learned ITAT has dismissed the said appeal preferred by the revenue. It is to be noted that against the confirmation of addition of ₹ 64,47,623/- by the learned CIT(A), the assessee preferred appeal before the learned ITAT being ITA NO. 1426 of 2012 and learned ITAT has allowed the said appeal deleting the addition of ₹ 51,37,327/-, which is subject matter of Tax Appeal No. 943 of 2013 (with which we are not concerned in the present appeal). 2.4 Feeling aggrieved and dissatisfied with the judgment and order passed by the learned Tribunal in deleting the addition of ₹ 51,37,327/- u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditor to come with a proceeding for enforcement of the debt even after expiry of the normal period of limitation as provided in the Limitation Act . 4. In the case of Nitin S. Garg (supra) this Court has observed and held as under: It had not been established that the assessee had written off the outstanding liabilities in the books of account. The Tribunal was justified in taking the view that the assessee had continued to show the admitted amounts as liabilities in the balance sheet, the same could not be treated as cessation of liabilities. Merely because, the liabilities were outstanding for last many years, it could not be inferred that the said liabilities has ceased to exist. The Tribunal had rightly observed that the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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