Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 823 - ITAT RAIPURAddition u/s. 41(1) - outstanding balance in the account of a party - HELD THAT:- We are of the considered view that in the present case before us, in the absence of any evidence to conclude that there was a final remission or cessation of the trading liabilities or any part of it the provisions of Sec. 41(1) could not have been invoked by the A.O. Also, support is drawn from the order in the case of Satpal & Sons [2017 (9) TMI 41 - ITAT DELHI] wherein it was, inter alia, observed by the Tribunal that the obtaining by the assessee of a benefit by virtue of remission or cessation is the sine-qua-non for the application of Section 41(1) of the Act. We not being able to persuade ourselves to subscribe to the view taken by the lower authorities, who without satisfying the pre-conditions set out in Section 41(1) had dubbed the outstanding liabilities of the assessee company as ceased liabilities, thus, set-aside the order of the CIT(Appeals) and vacate the addition made by the A.O. u/s. 41(1) of the Act. Decided in favour of assessee.
|