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TMI Blog2022 (6) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... . P.C. : Heard learned counsel for the parties. 2. By this appeal filed under section 260-A of the Income Tax Act, 1961, the Appellant- Revenue has challenged the judgment and order dated 15 March 2017 passed by the Income Tax Appellate Tribunal. The relevant assessment year is 2011-12. 3. The Appellant- Revenue has pressed before us following two questions as substantial questions of law: ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) directed the Assessing Officer to disallow 12.5% bogus purchases and to add 12.5% of the amount of purchases as income of the Appellant. The argument advanced is that the bogus purchases ought to have been disallowed in totality. The learned counsel for the parties have placed before us the decisions of the Division Bench in the cases of Pr. Commissioner of Income Tax v. M/s.Mohommad Haji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditors whose payments were outstanding for more than three years and some transactions which are eight to nine years old, the same were barred by the provisions of the Limitation Act, 1963 and, therefore, they will have to be treated as Assessee's income and to be added under section 41(1) of the Income Tax Act. This issue has been dealt with by both the Commissioner (Appeals) and the Tribunal rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by limitation, it does not cease to be a debt. This view is also taken by this Court in the case of CIT v. Indian Rayon and Industries Ltd. (2011) 336 ITR 479 (Bom). Therefore, the submission made by the Appellant that because the liability is barred by the period of limitation the same would be treated as income and added under section 41(1) of the Act cannot be accepted as no other decision con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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