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2018 (3) TMI 1515 - AT - Income TaxAddition u/s 41 - remission or cessation of liability proof - Held that:- Addition under section 41(1) cannot be made simply by doubting the creditor or his creditworthiness or his identity. Further, no addition can be made simply because the creditors are very old. In view of the above facts as well as the various binding precedents, we are of the considered opinion that no addition can be made under section 41(1) of the Act merely on the basis of doubting the genuineness of the creditor without establishing the actual cessation of liability. Hence when the assessee is showing the liability in the books of account and has repaid in the subsequent years then the addition under section 41(1) of the Act is not sustainable. - Decided in favour of assessee.
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