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2010 (6) TMI 481 - AT - Income TaxAddition of income - ceased liability u/s 41(1) - The AO made the additions on the basis that the assessee had shown the liabilities in respect of the expenditure incurred during the years but he has not given the details and addresses of the parties and thus are not verifiable, hence, the liabilities claimed in respect of the expenditure incurred, has ceased and income is liable to tax u/s 41 (1) of the IT Act - The assessee submitted before the learned CIT(A) that these are very old creditors and hence does not have Permanent Account Numbers and confirmations of these parties - Section 41(1) of the IT Act is attracted when there is cessation or remission of a trading liability - However, considering the provisions of section 41 (1) would not apply to the facts and circumstances of the case; there is no need to give further findings on this issue – Appeals are allowed
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