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TMI Blog2017 (2) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case and in law, the Tribunal was right in deleting the addition made with regard to amount shown as 'advance against export' outstanding since 1997, allegedly received from Amas Mauritius Ltd. failing to appreciate the prevailing business/economic reality that no genuine buyer would allow substantial amounts to remain outstanding for more than 10 years?" 3. The facts relevant to the present appeal are that during the course of assessment for the subject assessment year, the Assessing Officer noticed that an amount of Rs. 3.04 crores was reflected under the head "current liabilities" (being advance against exports) in its balance sheet for the year ending 31st March, 2007. On inquiry, the Assessing Officer found that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cease to exist. So far as the genuineness of the transaction as well as creditworthiness of the creditor is concerned, the impugned order holds that the same was appearing in the books of account for all the earlier assessment years and the same was accepted by the Revenue as genuine. Further the impugned order placed reliance upon a decision of its Coordinate bench in Jayram Holidngs Pvt. Ltd. (Income Tax Appeal No.6914/Mum/2010) rendered on 4th July, 2012 wherein in almost identical fact situation, advance received for exports was also shown in the accounts as a liability for a period of more than 10 years, the Tribunal took a view that there can be no addition of the amount shown as a liability either under Section 41(1) and/or under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Jayram Holdings Pvt. Ltd. (supra) was handed over by Mr. Suresh Kumar, the learned counsel for the Revenue. We notice that in the above case also the assessee therein had received from its sister concern an advance for export and shown in its books over a period of 10 years as a liability. However the Tribunal held that Section 41(1) of the Act cannot be applied so long as the liability is acknowledged. This by placing reliance upon the order of this Court in Chase Bright Steel Ltd. (supra) wherein the Court has held that Section 41(1) of the Act will only apply if any deduction or allowance has been allowed for any assessment year on account of any loss or expenditure and in a subsequent year any benefit is obtained in respect of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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