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2010 (10) TMI 170 - HC - Income TaxApplicability of section 41 (1) of the Income Tax Act, 1961 - The Assessing Officer was of the opinion that the creditors shown appeared to be bogus - Learned Counsel for the assessee argues that the conditions for applicability of Section 41 (1) of the Act for obtaining the benefit of remission or cession of the liability were not satisfied in the instant case The liabilities that exist in the balance sheet have to be proved by the assessee. Although in the earlier years, these liabilities were shown to be existing, it is seen from the record, what sort of evidence he produced in support of the claim of these liabilities is not clear. There was not even a confirmation letter coming in support of the liabilities. Apart from this, the conduct of the assessee has to be seen. He writes off in a subsequent year where the department says, it was the year of loss and the assessing officer has made a specific comment that the writ off has been made only in the year of loss so that if does not have any tax implication. The appeal is accordingly dismissed
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