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2018 (6) TMI 1100 - ITAT AHMEDABADAddition u/s.41(1) - cessation of liability - whether the purported creditors shown as outstanding in the books for several years were unsupported by complete addresses and were non-traceable and the assessee on few instances did not dispute about closure of its account in rival party's books - we are not impressed by the plea the AO did not bring anything on record to allege that cessation took place during the financial year in question for the purposes of taxability under s.41(1) of the Act. We find that AO has assertive justification to bring the outstanding liability within the net of s.41(1) of the Act in the Financial Year under inquiry. The onus is on the Assessee to show that year of cessation is different. In the instant case, the Assessee does not admit cessation at first place. AO is within its right to hold the Financial Year in question as the right year for taxability when the facts concurring the non existence were unrevealed. The Assessee was failed to discharge onus. Besides, the defect of year of taxation if any can be cured under s.153(6) in such cases. However, we do not consider it expedient to dwell further - addition made in respect of trading liabilities which had ceased to exist represents taxable business income in terms of Section 41(1) of the Act - Appeal of the Revenue is allowed.
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