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TMI Blog2022 (9) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... ant assessment year. (underlined by us) As recorded above, during the remand report, the creditor clearly replied that he has already received payment against the supply of sand - FY 2011-12, thus, the liability to make payment was cessed long back, thus, we affirm the order of ld CIT(A). Grounds of appeal raised by the assessee are dismissed. - ITA No. 28/Srt/2020 - - - Dated:- 23-9-2022 - Shri Pawan Singh, Judicial Member And Dr. Arjun Lal Saini, Accountant Member For the Assessee : Shri Surjit D Chheda, AR For the Department : Shri Vinod Kumar, Sr. DR ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opy of confirmation (self-certificate) and bills and submitted that the credits are outstanding for long period for the reasons of financial crisis with the assessee. The reply of assessee was not accepted by the Assessing Officer by taking a view that the confirmation is not signed by the parties and the liability is of more than three years and no document or confirmation that liability still stands alive and the provisions of Section 41(1) of the Income Tax Act, 1961 (in short, the Act) attracts on such credit. Accordingly, the Assessing Officer added Rs. 19,70,374/- on account of remission of cessation of liability. 3. Aggrieved by the additions, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain sent copies of confirmation singed by him along with letter and asked creditor to confirm whether such confirmation was given by him or not as the creditor has not mentioned anything about such confirmation in his earlier reply and that details of payment received by him was also called but he has not given any detail that how and where he received such payment. The Assessing officer reported that one more letter was issued to assessee called certain details. In response to said letter, the creditor has filed written reply through e-mail vide his letter dated 09/10/2018 and submitted that I have carefully gone through confirmation as sent by you and submitted by M/s Kaneria Infratech Ltd. I have surprised shocked that I did not sign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utstanding amount pertaining to Dayalbhai M. Moradia was false and no such credit outstanding as the creditor has shown in its account. The e-mail sent by creditors clearly leads to conclusion that the credit liability cease to exist and thus provisions of Section 41(1)(a) is clearly applicable. On such observation, the ld. CIT(A) upheld the addition made by the Assessing Officer. Further aggrieved, the assessee has filed the present appeal before this Tribunal. 6. We have heard the submissions of the ld. Authorised Representative ld. AR) of the assessee and the ld. Senior Departmental Representative (Sr. DR) for the revenue. The ld. AR of the assessee submits that as per confirmation of creditors in consequence of remand proceedings, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nish remand report. The Assessing officer furnished his remand report vide report dated 16/11/2018, along with remand report, the Assessing officer also furnished copy of reply of said creditor, sent through e-mail, wherein he has disputed his signature on the confirmation and submitted that he has sold sand to assessee in F.Y. 2011-12 of Rs. 19,70,211/- and he has received amount by cash on various dates in F.Y. 2011-12 i.e. within the short span of period of 15 days from the date of sale of goods as per the custom in his business. On the basis of such reply, the Assessing Officer furnished his remand report and reported that the confirmation filed by assessee is false. The ld. CIT(A) after considering the reply of Assessing Officer, uphel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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