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TMI Blog2018 (6) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... , fact that the appellant had not filed appeal against the assessment proceeding is not an unequivocal evidence that it had filed 'inaccurate particulars of income' - thus there is no merit in the action of the AO of levying penalty - since we have already deleted the addition made by AO, which forms basis of levy of penalty, we do not find any infirmity in the penalty being deleted by Ld. CIT (A) - hence appeal of revenue is dismissed. - ITA No. 6776/Del/2015, ITA No. 6833/Del/2014 And Cross Objection 183/Del/2017 - - - Dated:- 8-6-2018 - SHRI RS SYAL, VICE PRESIDENT AND SMT. BEENA A PILLAI, JUDICIAL MEMBER For The Assessee : Sh. Manpreet Singh Kapoor, FCA For The Department : Smt. Shefali Swaroop, CIT, D.R. ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on facts and circumstances of the case in invoking section 41(1) and concluding that other liabilities ₹ 12,17,23,144/- were written off / remitted without carrying out any enquiry or confirmation or any other established procedure for verification. 5. The appellant craves the consent to add, modify, amend or delete any of the ground of appeal at the time of hearing. Relief Claimed The appellant prays to delete the disallowance/additions in terms of the statement of facts and grounds of appeal, and/or any other relief, which your honour deems fit in the interest of justice. ITA No. 6833/Del/2014 (revenue s appeal against penalty order) 1. Whether on the facts and circumstances of the case and in law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing of food products and has one unit. It was observed by Ld.AO that assessee had sundry creditors at ₹ 5,77,00,706/-as against sundry creditors of ₹ 5,67,35,912/- in the immediately preceding Assessment Year. As no details being filed by assessee, Ld. AO made addition of ₹ 5,77,00,706/-as liability that had ceased to exist and accordingly made addition under section 41 (1). Further with regard to other liabilities as on 31/03/10 amounting to ₹ 12,17,23,144/-as against ₹ 11,91,50,553/-in the immediately preceding year in the absence of any details from assessee Ld. AO held liability having ceased to exist and made addition under section 41 (1). 2.1. Aggrieved by order of Ld.AO, assessee preferred appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r through Hon ble Delhi High Court. Ld.AR further submitted that there would not be any changes in the total amount of sundry creditors outstanding at the end of every financial year as assessee is in partial liquidation and the list of the same has already been submitted with Hon ble High Court. It was thus submitted that the liabilities had not ceased and therefore Ld.AO was not justified in making addition under section 41(1) of the Act. 3.2. On the contrary Ld.DR submitted that addition has been made since assessee failed to submit details in respect of the sundry creditors and other liabilities. 4. We have perused the submissions advanced by both the sides in the light of the records placed before us. 4.1. It is observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty appeal has been filed by Revenue against order dated 22/09/14 passes by Ld.CIT (A)-15, New Delhi and Assessee filed Cross Objection challenging notice issued under section 274 read with section 271 (1) ( c) of the Act for Assessment Year 2010-11. At this juncture Ld.AR submits that the Cross Objection raised by assessee shall be taken as not pressed . Accordingly the same stands dismissed. 8. We have perused the submissions of assessee recorded by Ld. CIT (A) in the impugned order. Ld. CIT (A) has deleted the present penalty by observing as under: 6.3 I find that the appellant had not filed any appeal against the order dated 15.3.2013 passed u/s 143(3) of the Act. Further, against the impugned order 27.9.2013, appeal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under the circumstances, evidently all 'sundry creditors' and 'current liabilities' as on 31.3.2009 were already examined in the assessment proceeding for AY 2009-10 and no adverse view in respect thereof can be taken. 6.5 Further, the appellant had filed details of Sundry creditors and 'other liabilities' before the Hon'ble Delhi High Court, following the Hon'ble High Court's order dated 28.9.2006 appointing a liquidator to settle private liabilities. The appellant during the course of these proceedings had filed details of increase in the current year in sundry creditors and other liabilities. Evidently, as the appellant has closed its Industrial Undertaking in view of the decision taken by the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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