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TMI Blog2009 (12) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, the assessee herself admitted during the assessment proceedings that she had lost contact with the creditors and their latest addresses are being located and further, the addresses of creditors and their PANs were also not given during the assessment proceedings – held that - It is the conceded position that in the assessee's balance sheet, the aforesaid liabilities have been shown, which are payable to the sundry creditors. Such liabilities, shown in the balance sheet, indicate the acknowledgment of the debts payable by the assessee. Merely because such liability is outstanding for the last six years, it cannot be presumed that the said liabilities have ceased to exist. It is also conceded position that there is no bilateral act of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact that the Assessing Officer in his assessment order has observed that though copies of accounts of sundry creditors appearing in the books of the assessee signed by the concerned creditors were filed by the assessee, the assessee herself admitted during the assessment proceedings that she had lost contact with the creditors and their latest addresses are being located and further, the addresses of creditors and their PANs were also not given during the assessment proceedings? (iii) Whether the learned ITAT was right in holding that no trading liability existed in the case which was necessary to attract Section 41 (1), thereby totally disregarding the basic facts of the case that the conditions necessary for invoking Section 41 (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rading liabilities in the earlier year. 3. Against the order of the CIT (A), the revenue filed appeal, which has been dismissed by the ITAT, while observing as under :- "It was for the AO to show that the liabilities in question had ceased to exist. In fact, these liabilities were payable to the assessee and unless demonstrated, they were to be shown as outstanding. These liabilities were appearing in the assessee's balance-sheet, indication acknowledgment of the debts payable by the assessee, as has been held in "CIT v. Tamil Nadu Warehousing Corpn." 292 ITR 310 (Mad), and "Ambika Mills Ltd. v. CIT" 54 ITR 167 (Guj.). As such, these liabilities could not have been treated to have ceased and so, invocation of the provisions of Section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of "Chief Commissioner of Income Tax v. Kesaria Tea Co. Ltd." (2002) 254 ITR 434 (SC)." 4. After hearing learned counsel for the appellant and going through the impugned order, we do not find any merit in the instant appeal. It is the conceded position that in the assessee's balance sheet, the aforesaid liabilities have been shown, which are payable to the sundry creditors. Such liabilities, shown in the balance sheet, indicate the acknowledgment of the debts payable by the assessee. Merely because such liability is outstanding for the last six years, it cannot be presumed that the said liabilities have ceased to exist. It is also conceded position that there is no bilateral act of the assessee and the creditors, which indic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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