CIT v. Sugauli Sugar Works (P) Ltd.

ITO, Ward - 3(3), Kolkata vs. M/S. C D Steel Pvt. Ltd., Kolkata

Appeal is dismissed

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2013 14

…case in order to find out as to under what circumstances it could be said that there is cessation of liability. Further, the decision of Delhi High Court is after considering the view taken by the Apex Court case of CIT v. Sugauli Sugar Works (P.) Ltd. [1999J 236 ITR 518/102 Taxman 713. 9. I further find that the Supreme Court in the case of CIT v. Sugauli Sugar Works. (P.) Ltd. (236 ITR 518) had considered the issue concerning cessation or remission of liability and whether the cessation of liability can occur by reason of operation of the respective law. In the said judgment the Supreme Court referred to the de…

ACIT, Circle-36, Kolkata vs. M/S Soorajmull Nagarmull, Kolkata

Appeal is dismissed

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2001-02 Acit, Cicle-36, Aayakar V/S. M/S Soorajmull Nagarmull, Bhawan, Poorva, 8Th 8 B.B.D. Bag (East), Floor, 110, Shantipally, Kolkata-700001 Kolkata-107 [Pan No.Aaaab 0601 N] .. अपीलाथ" /Appellant ""यथ"/Respondent Md. Usman Cit-Dr अपीलाथ" क" ओर से/By Appellant Shri Akkal Dudhwewal, Fca ""यथ" क" ओर से/By Respondent 26-06-2018 सुनवाई क" तार"ख/Date Of Hearing 20-07-2018 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Revenue’S Appeal For Assessment Year 2001-02 Calls Into Question Correctness Of The Commissioner Of Income Tax (Appeals)-10, Kolkata’S Order Dated 08.07.2016, Passed In Case No.142/Cit(A)/10/Cir-36/15-16/Kol, Reversing Assessing Officer’S Action Invoking Section 41(1) After Treating The Assessee’S Liability Amount Of ₹12,97,47,322/- To Be A Case Of Cessation Of Liability Assessment Order Dated 30.03.2015, Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. 2. We Notice At The Outset That Cit(A)’S Detailed Discussion On The Above Sole Issue Of Cessation Of Liability U/S 41(1)(A) Of The Act Reads As Follows:- “06. Decision: 1. I Have Carefully Considered The Action Of The Ld.Ao In Adding An Amount Of Rs.12,97,47,322/- U/S. 441(1) Of The Income Tax Act, 1961, On Grounds That There Was A Cessation Of Liability On The Part Of The Assessee For The Impugned Amount & That Therefore It Would Constitute Part Of The Income Of The Assessee-Firm. It Is To Be Observed That This Is The 2Nd Round Of The Assessment Order For The A.Y 2001-02, And

…Page 9 order to find out as to under what circumstances it could be said that there is cessation of liability. Further, the decision of Delhi High Court is after considering the view taken by the Apex Court case of CIT v. Sugauli Sugar Works (P.) Ltd. [1999J 236 ITR 518/102 Taxman 713. 9. I further find that the Supreme Court in the case of CIT v. Sugauli Sugar Works. (P.) Ltd. (236 ITR 518) had considered the issue concerning cessation or remission of liability and whether the cessation of liability can occur by reason of operation of the respective law. In the said judgment the Supreme Court referred to the de…

Jashojit Mukherjee, Kolkata vs. ACIT, Cir-50, Kolkata

In the result, the appeal of the assessee is allowed

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 403/Kol/2017 Assessment Year : 2012-13 Jashojit Mukherjee -Vs- Acit, Circle-50, Kolkata [Pan: Afapm 7208 R] (Appellant) (Respondent)

…satisfied if he is merely told that requirement is the normal course he is not likely to be exposed to action by the creditor." (Underlining, italicised in print, Ours) This was also the view taken by the Supreme Court in CIT v. Sugauli Sugar Works (P.) Ltd. 236 ITR 518 (SC) (supra). 14. Since the Tribunal has relied on the judgment of the Supreme Court in the case of CIT v. Sugauli Sugar Works (P.) Ltd. (supra) we may usefully refer to the decision in order to appreciate the controversy therein and the ratio laid down. That was a case of a private limited company. In respect of the asst. yr. 1965-66, it transfe…

Sri Joy Barman, Kolkata vs. ITO, WD-42(3), Kolkata

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

…l. Page 12 such amount of tax as determined. Please consider that liability subsisting but not legally enforceable cannot amount to cessation of liability. Kindly consider the decision of the Supreme Court in CIT vs. Sugauli Sugar Works (P) Ltd. - reported in 236 ITR 518. Accordingly the unilateral presumption of the Assessing Officer has no evidentiary value. Hence the Penalty as determined by the Assessing Officer be deleted in full. Ld. AR further prayed before the Bench to delete the penalty levied Authorities Below. On the other hand, Ld DR before us vehemently relied on the order of authorities below. 12. W…

Sri Joy Barman, Kolkata vs. ITO, WD-42(3), Kolkata

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

…l. Page 12 such amount of tax as determined. Please consider that liability subsisting but not legally enforceable cannot amount to cessation of liability. Kindly consider the decision of the Supreme Court in CIT vs. Sugauli Sugar Works (P) Ltd. - reported in 236 ITR 518. Accordingly the unilateral presumption of the Assessing Officer has no evidentiary value. Hence the Penalty as determined by the Assessing Officer be deleted in full. Ld. AR further prayed before the Bench to delete the penalty levied Authorities Below. On the other hand, Ld DR before us vehemently relied on the order of authorities below. 12. W…

DCIT, Cir-10(2), Kolkata vs. M/S Sonodyne Television Co. Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

Bench: Hon’Ble Shri Waseem Ahmed, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 330/Kol/2016 Assessment Year :2011-12 Dcit, Circle-10(2), Kolkata -Vs- M/S Sonodyne Television Co. Ltd. [Pan: Aaecs 7096 R] (Appellant) (Respondent)

…ors are traceable and there is every hope for recovery of the monies from them. In that case the liability cannot be considered to be ceased. The decisions of the Hon'ble Supreme Court in the case of Commissioner of Income Tax vs. Sugauli Sugar Works (P) ltd. 236 ITR 518 as relied upon by the appellant is important as in that case the principle laid down is that the test limitation of liability cannot be decided by the assessee itself but in the presence of the creditor. In the case of the appellant the creditors have never discharged their onus or refused to pay the appellants. Further, the decision of the Gujar…

ITO, WD-1(2), Kolkata vs. M/S Bajranghali Engineering, Howrah

In the result, the appeal filed by the Revenue, is dismissed

…exist and section 41(1) could be invoked in the instant case. In this case the assessee has not obtained any kind of benefit directly or indirectly. The counsel for the assessee cited the decision of the Supreme Court in CIT vs. Sugauli Sugar Works (P) Ltd. (236 ITR 518 Sc) and he contended that the expiry of the period of limitation prescribed under the law of limitations did not extinguish the debt. Therefore, considering the facts and circumstances and M/s BajrangbaliEngg. Co. Ltd. Assessment Year: 2007-08 citing the judgment of the Hon’ble Supreme Court, the ld. CIT(A) deleted the addition. 4.3 On the other…

M/S Bajrangball Engineering Co. Ltd., Howrah vs. ITO, WD-1(2), Kolkata

In the result, the appeal filed by the Revenue, is dismissed

…exist and section 41(1) could be invoked in the instant case. In this case the assessee has not obtained any kind of benefit directly or indirectly. The counsel for the assessee cited the decision of the Supreme Court in CIT vs. Sugauli Sugar Works (P) Ltd. (236 ITR 518 Sc) and he contended that the expiry of the period of limitation prescribed under the law of limitations did not extinguish the debt. Therefore, considering the facts and circumstances and M/s BajrangbaliEngg. Co. Ltd. Assessment Year: 2007-08 citing the judgment of the Hon’ble Supreme Court, the ld. CIT(A) deleted the addition. 4.3 On the other…