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TMI Blog2019 (9) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... ng up process has been completed. Hon ble Delhi High Court in the case of CIT vs. Vardhman Overseas Ltd. [ 2011 (12) TMI 77 - DELHI HIGH COURT] has held that there is no cessation of liability when Assessee has not unilaterally the written back the amounts on account of sundry creditors in its P L account. It is also noted that the facts of the judgment of Hon ble Supreme Court in the case of T.V. Sundaram Iyengar [ 1996 (9) TMI 1 - SUPREME COURT] are different as in that case, because the Assessee had written back the amounts as income in its Profit Loss Account. Therefore, CIT-A rightly deleted the additions made by the assessing officer - Decided against revenue - ITA No. 6650/Del/2016 - - - Dated:- 4-6-2019 - Shri H.S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - u/s. 143(3) of the Act vide order dated 05.01.2016 and made the addition of ₹ 2,78,25,006/-. Against the assessment order, assessee appealed before the Ld. CIT(A), who vide his impugned order dated 14.10.2016 has allowed the appeal of the assessee. Aggrieved with the impugned order, Revenue is in appeal before the Tribunal. 3. On the other hand, Ld. DR relied upon the order of the Assessing Officer. He submitted that the assessee company itself had admitted that the amounts were outstanding for more than five-six years and therefore, the assessee company obtained a benefit in the course of its business which was assessable under section 41(1) of the Income Tax Act, 1961. He further submitted that the assessee compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble High Court. Hon ble Delhi High Court had appointed a Provisional Liquidator for winding up of the company on 09.07.2010. Appellant had preferred an appeal before Appellate Authority for Industrial and Financial Reconstruction (AAIFR), New Delhi which has stayed the order of Hon ble High Court till further orders and the matter is under consideration of AAIFR. It had filed its ITR on 21.1.2014 for AY 2013-14 declaring NIL income. During the course of assessment proceedings, Assessing Officer observed that assessee company had shown trade payable at ₹ 9,36,79,214/-. Appellant Company filed a chart containing 311 parties and the period related to FY 1999-2000 onwards. However, it could not file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that liability has ceased to exist in Appellant s case as neither the liability has been written back by the Appellant in its Profit and Loss Account nor the winding up process has been completed. Hon ble Delhi High Court in the case of CIT vs. Vardhman Overseas Ltd., 343 ITR 408 has held that there is no cessation of liability when Assessee has not unilaterally the written back the amounts on account of sundry creditors in its P L account. The facts of the judgment of Hon ble Supreme Court in the case of T.V. Sundaram Iyengar are different as in that case, Assessee had written back the amounts as income in its Profit Loss Account. Therefore, in view of the aforesaid judgement of Hon ble Delhi High Court and the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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