9911796707
TMI Blog2011 (12) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) erred in confirming addition of ₹ 45,72,591/- in respect of creditors where there has been no cessation or remission of liability. ii) No interest is chargeable under section 234B of the Act. 3. In regard to ground no.2 with respect to chargeability of interest under section 234B of the Act; since it is consequential and mandatory, we dismiss this ground raised in the appeal. 4. The assessee is a firm engaged in the business of manufacturing of art silk cloth. During the year, the assessee had no business activities. The assessee filed its return of income on 06.12.2007. Subsequently, the case was selected for scrutiny and the assessment was completed on 30.12.2009 under section 143(3) of the Act. During the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out by the assessee and also brushed aside the case laws relied upon by the assessee because those decisions were not found to be applicable to the facts of the assessee s case since the assessee had not produced any documentary evidence or otherwise to show that the sundry creditors to the extent of ₹ 45,72,951/-were really and actually existing till date. Due to the above reasons, the ld. CIT(A) upheld the addition made by the ld. A.O. 6. The ld. A.R. submitted before us that the assessee had no trading activities during the previous year under consideration. Sundry creditors shown in the balance sheet were genuine and were accumulated over the past few years. He further submitted that the detailed list of all the sundry credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r producing confirmation statements from the creditors. However, the assessee could produce confirmation statements only with respect of four parties. The other creditors apparently were not pursuing to collect the debts due from the assessee. Since the assessee had no business activities during the year, it appears that either sundry creditors were not serious in collecting the dues or not genuine. Therefore, the ld. D.R. prayed that the order of the revenue authorities may be upheld. 8. We have heard the rival submissions and perused the materials on record and the paper book submitted by the assessee running from 1 to 30 pages. From the facts before us, it is evident that the assessee had furnished the list of sundry creditors before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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