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2016 (1) TMI 1266 - AT - Income TaxAddition on account of cessation of liability - Held that:- The original concern will look the identity and need not file I.T. Return. As Orgo Pharma Chemicals is existing after the transfer of certain assets and liabilities, hence, the condition no.(iii) that there is succession in business is not factually correct. As there is no succession business as per sec.41(1) Explanation of Sec. 170 of I.T. Act, hence condition no. (ii) was not fulfilled. A.O’s addition is not tenable in law. In the present case there was no deduction from return of income from any of the predecessor interest of the assessee rather it is an assignment of liability on transfer/amalgamation of company and assets and the CIT(A) after considering the entire fact available before him, the addition was correctly deleted. - Decided in favour of assessee.
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