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TMI Blog2013 (9) TMI 1246X X X X Extracts X X X X X X X X Extracts X X X X ..... s and circumstances of the case and in law, the tribunal has erred in law in deleting the addition of ₹ 45,72,591/- made by the Assessing Officer under Section 41(1) of the Act and confirmed by the learned CIT(A)? (B) Whether on facts and circumstances of the case and in law, the tribunal has erred in law by not appreciating the fact that assessee has not furnished confirmations in respect of sundry creditors in question even after providing sufficient opportunities? (C) Whether on facts and circumstances of the case and in law, the tribunal has erred in law by not appreciating the fact that assessee has not established the existence of the trading liability in respect of these sundry creditors? 2. The fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer in treating the sundry creditors to the extent of ₹ 45,72,591/- as ceased to exist during the accounting year for the relevant assessment year under consideration. 2.3. Being aggrieved and dissatisfied with the order passed by the CIT(A), the assessee preferred appeal before the ITAT and by impugned judgment and order ITAT has allowed the said appeal directing to delete the addition made by the Assessing Officer for ₹ 45,72,591/- under Section 41(1) of the Act, which came to be further confirmed by the CIT(A). Being aggrieved and dissatisfied with the impugned judgment and order passed by the ITAT, the revenue is before this Court by way of the present Tax Appeal with the aforesaid proposed question of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apparent that all the sundry creditors pertained to the earlier years which remain to be paid. The assessee s submission that the creditors did not co-operate with the assessee to furnish confirmation statement since they were aggrieved for not being paid in due time by the assessee, cannot be brushed aside. When all the facts were before the revenue, the revenue had enough authority to make some enquiries on the bona fides of the creditors. Further, the revenue has not brought anything on record to show that the sundry creditors had forgone their debts in favour of the assessee. From the case laws relied upon by the assessee supra, it is obvious that such addition under Section 41(1) of the Act cannot be made by the revenue in these circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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