there was no misrepresentation or suppression of facts at the end of assessee is far from reality. It is pertinent to note here that the during the course of survey proceedings, it has been noticed from the perusal of impounded material that assessee had passed an entry on 31.03.2011 that Rs. 65,00,000/- has been paid by M/s Stawelly Hospitality Pvt. Ltd. on behalf of company. Further, the said liability continued to be appearing in the balance sheet of F.Y. 2017-18 pertaining to A.Y. 2018-19 and on enquiry of the same, the assessee company failed to explain the issue of Rs. 65,00,000/shown as liability in B/S along with proper documentary evidences, both during post survey investigations and during the assessment proceedings despite availing sufficient opportunities. Therefore, the assessee has shown a false trading liability in its books of account which clearly hits provision of section 270A(9)(d) of the Act. The issue has been discussed in assessment order in detail. Further, the assessee company has suppressed this fact before the department and never offered this income for taxation on account of cessation of liability and this fact was noticed during the survey proceedings. If the survey was not conducted, no details in this respect would came into notice of the department. Therefore, it is clear that the assessee company has not provided correct facts before the department and the same is considered as misrepresentation or suppression of facts by the assessee company and the company has recorded a false entry in the form of trading liability which was nonexistent during the year under consideration (AY 2018-19).
