M/S SHRI BALAJI BUILDERS,1/43, RHB COLONY, BHIWADI, ALWAR vs. ACIT, CIRCLE-1, ALWAR

ITA 192/JPR/2023Status: DisposedITAT Jaipur12 July 2023AY 2013-14Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)13 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition made under Section 41(1) was not justified as the assessee had provided reconciliation and evidence of payment in a subsequent financial year. The lower authorities did not follow the directions of the ITAT to call for confirmation from the creditor.

What were the facts?

The assessee claimed a liability of Rs. 11,62,831/- towards a creditor, M/s Purulia Metal Casting Pvt. Ltd., while the creditor's statement showed a debit balance of Rs. 66,594/-. This difference of Rs. 10,96,237/- was treated as cessation of liability under Section 41(1) of the Income Tax Act.

What were the issues?

Whether the difference in the creditor's account balance constitutes cessation of liability under Section 41(1) when the assessee provided reconciliation and evidence of payment?

Which sections of the Income-tax Act were involved?

Section 41(1),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

Hearing: 09/05/2023

PER: DR. S. SEETHALAKSHMI, J.M. This appeal filed by the assessee is directed against order of the ld. CIT(A) dated 27-02-2023, National Faceless Appeal Centre, Delhi [ hereinafter referred to as (NFAC) ] for the assessment year 2013-14 wherein the assessee has raised the following grounds of appeal

“ 1. The ld. CIT(A), NFAC has erred on facts and in law in confirming the addition of Rs. 10,96,237/- u/s 41(1) of the Act by treating the outstanding

The order continues below.

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