(1.) The Revenue has filed this appeal under section 260A of the Income-tax Act, 1961 (for short, "the Act"), aggrieved by the order passed by the Income-tax Appellate Tribunal, whereby allowing the assessee's appeal in I. T. A. No. 399/PNJ/2014 for the assessment year 2010-11.
(2.) The issue involved in the present case according to the learned counsel appearing for the Revenue, Mr. Y. V. Raviraj, is that the learned Tribunal has wrongly deleted the addition made under section 41(1) of the Act made in the hands of the assessee, on account of the remission/cessation of the liability of the various transporters, who transported the minerals for the assessee during the relevant period. He submitted that the assessee failed to produce these transporters/trade creditors before the assessing authority, despite the summons issued to them under sections 131 and 133(6) of the Act and since, the parties were not produced, the learned assessing authority was justified in treating the outstanding amount lying in credit in their ledger account by the cessation of the liability of the respondent/assessee and additions were not accordingly made in the declared income of the assessee under section 41(1) of the Act. He relied upon the findings of the assessing authority in the impugned assessment order dated March 26, 2013.
(3.) The matter was taken by the assessee before the first appellate authority which partly allowed and in second appeal, the learned Tribunal completely set aside the addition giving the following findings in favour of the assessee at paras 8 and 9 of the impugned order, which are quoted below for our ready reference :