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2016 (4) TMI 1305 - ITAT AMRITSARAddition u/s 41 - remission or cessation of liability - explanation offered by the assessee was not satisfactory - Held that:- In the present case, once the credit entry qua Sh. Anup Kumar is continuing in the assessee’s books over several years and it has been accepted as such, the ld. CIT(A) has clearly erred while accepting Sh. Anup Kumar’s version that he did not owe anything to the assessee and rejecting the assessee’s entry of credit outstanding. Thereby, the Authorities below have raised the issue of genuineness of the credit entry during the year under consideration, which action is not sustainable in view of the ‘Jain Exports Pvt. Ltd.’ (2013 (5) TMI 690 - DELHI HIGH COURT ). Therefore the addition is deleted. Apropos party no.2, the entry has been standing in the assessee’s books over the years and it has not been challenged in the initial year of such entry. no conclusion of cessation of liability can be arrived at. As such, this addition is deleted. So far as regards party no. 3, i.e., Civil Surgeon, Hoshiarpur the fact that the entry was statedly a wrong entry does not stand disputed by the Taxing Authorities, since they had not disputed the fact that this entry was rectified in the next year. As such, existing over the years, this entry has not been earlier decided against the assessee. Accordingly, this addition is also deleted. - Decided in favour of assessee. Trading addition - unaccounted sales - Held that:- It is trite that no addition can be made in the trading results without any material on record and without pointing out any defect, either in the method of accounting of the assessee, or in the books of account maintained by the assessee. See‘J.A. Trivedi Brothers vs. CIT’(1984 (11) TMI 39 - MADHYA PRADESH High Court) - Decided in favour of assessee.
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