SATWANTKAUR R. CHANEY,MUMBAI vs. ACIT 33(3), MUMBAI

This appeal by assessee under section 253 of the Income-tax Act (the Act) is directed against the order of ld. Commissioner of Income-tax (Appeals)

Brief facts of the case are that the assessee is in the business of Manufacturer & Trading of Furniture & Fixture, Electrical Fittings, Mum 2016-Satwantkaur R. Channey Plumbing, Painting, and Tiling Polishing & POP work, filed its return of income for Assessment Year 2012-13 on 29.09.2012 declaring total income at Rs. 60,13,280/-. The assessment was completed on 10.03.2015 under section 143(3) of the Act. The Assessing Officer while passing the assessment order made addition of Rs. 4,00,637/- on account of cessation of liability as creditor were standing in the assessee’s book for more than two years. On appeal before the ld. CIT(A), the action of Assessing Officer was confirmed. Thus, aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us.

We have heard the submissions of the ld. Authorized Representative (AR) of the assessee and the ld. Departmental Representative (DR) for the revenue and perused the material available on record. The ld. AR of the assessee submits that the amounts pertaining to sundry creditors being written off during the Financial Year 2014-15 i.e. Assessment Year 2015- 16 were offered as income for taxation. On the other hand, the ld. DR for the Revenue submits that no return of income and computation has been furnished on record.

We have considered the rival submissions of the parties and have gone through the orders of the lower authorities. On our direction, the ld. AR of the assessee filed copy of assessment order for Assessment Year 2015-16 passed on 14.12.2017 under section 143(3) along with the return of income and computation of income. We have noted that for computation of 2 ITA No. 6168 Mum 2016-Satwantkaur R. Channey income, the assessee has written back liability of the same amount.

In the result, appeal of the assessee is allowed.