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The Chief Commissioner Of Income Tax, ... vs M/S. Kesaria Tea Co. Ltd on 19 March, 2002

In the facts of the present case admittedly the decision of the Hon'ble Supreme Court in CIT vs. T.V. Sundaram Iyengar & Sons Ltd. (supra) cannot be applied because the sums in question are not appropriated or written off to the P&L a/c and, therefore, in my view the decision of the Hon'ble Supreme Court in CIT vs. ITA No.365/Ahd/2009 A.Y.2002-03 M/s Millat Fibres v. ACIT, Cir-6 SRT Page 7 Kesaria Tea Co. Ltd. (supra) clearly takes the assessee away from being taxed on such amounts which have still shown as trading liabilities in the books of account of the assessee. There is no material to show the character of these receipts has changed merely by passage of time."
Supreme Court of India Cites 4 - Cited by 82 - P V Reddi - Full Document

Saheli Synthetics (P.) Ltd. vs Assistant Commissioner Of Income-Tax on 19 October, 1995

In the present case, the matter was restored back by the Tribunal to the file of Assessing Officer for re-deciding the matter in connection with the addition made by AO u/s 41(1) and hence, in our considered opinion, as per this judgment of Hon'ble jurisdictional High Court rendered in the case of Saheli Synthetics P. Ltd. (supra), in the second round, this plea cannot be taken by the Revenue that if the addition is not sustainable u/s.41(1), the same should be sustained u/s.68 of the Act. Apart from this, we have also observed that in the facts of the present case, the provision of Section 68 are not attracted because the credits in question are in respect of purchases of the present year and against these purchases, there is corresponding sale or closing stock and unless this contention of the assessee is controverted by showing that these purchases are not having any corresponding sale or closing stock, the addition u/s.68 cannot be made with regard to these credits in the books of the assessee particularly when the assessee has duly furnished the confirmation and there is corresponding sale or closing stock against these purchases. Hence, this contention of Ld. DR of the Revenue is rejected.
Income Tax Appellate Tribunal - Ahmedabad Cites 4 - Cited by 9 - Full Document
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