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2019 (9) TMI 400 - ITAT DELHIAddition u/s 41 - proof of liability ceased - recommended for winding up of the company by BIFR - HELD THAT:- Assessee is a sick industrial unit and BIFR has recommended for winding up of the company. It is also noted that at present, the matter is subjudice before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) which has stayed the order of Hon’ble Delhi High Court till further orders. Therefore, it cannot be said that liability has ceased to exist in Assessee’s case as neither the liability has been written back by the Assessee in its Profit and Loss Account nor the winding up process has been completed. Hon’ble Delhi High Court in the case of CIT vs. Vardhman Overseas Ltd. [2011 (12) TMI 77 - DELHI HIGH COURT] has held that there is no cessation of liability when Assessee has not unilaterally the written back the amounts on account of sundry creditors in its P&L account. It is also noted that the facts of the judgment of Hon’ble Supreme Court in the case of T.V. Sundaram Iyengar [1996 (9) TMI 1 - SUPREME COURT] are different as in that case, because the Assessee had written back the amounts as income in its Profit & Loss Account. Therefore, CIT-A rightly deleted the additions made by the assessing officer - Decided against revenue
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