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2015 (7) TMI 1162 - ITAT CHANDIGARHAddition on account of cessation of liabilities under section 41(1) - Held that:- Provisions of Section 41 (1) would not apply in the case of the assessee as it is clear that assessee had continued to show the admitted amounts as liability in its balance sheet. The liabilities reflected in the balance sheet could not be treated as cessation of liability. Therefore, addition was wholly unjustified. - Decided in favour of assessee Disallowance of commodities loss - held that:- the enquiries from Ludhiana Stock Exchange revealed that claim of loss on account of commodity transaction was not a genuine claim. The assessee merely produced copy of notes from M/s Anand Commodity Services, would not prove that assessee suffered genuine loss. The evidences collected from Ludhiana Stock Exchange and confronted to the assessee clearly proved that the commodity transaction was not actually carried out but was merely accommodation entries. Earlier the Tribunal, while restoring the matter to the file of Assessing Officer directed the assessee to produce the requisite material and evidence to prove the genuineness of the loss in question. The assessee, however, failed to produce any requisite material and evidence before Assessing Officer in set aside proceedings to prove the genuineness of the loss in question. Therefore, authorities below were justified in maintaining the addition - Decided against assessee.
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