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2011 (6) TMI 135 - AT - Income TaxAddition - Cessation of liabilities u/s 41(1) - Merely because certain amount is outstanding for number of years will not be case for holding that there is a cessation or remission - As per the Hon’ble Punjab & Haryana High Court in CIT v. GP International Ltd. [2009 -TMI - 35248 - PUNJAB AND HARYANA HIGH COURT ] held that provisions of section 41(1) and explanation thereto are not applicable where assessee is still showing same amount as liability in its books and has not written off the same - Held that: the onus is on the revenue to show that the amount in question which is deemed as profit during the current year under section 41(1) was in fact taken into account in any earlier year either in the trading account or in the profit and loss account - Since Revenue has failed to discharge the onus, and so, the outstanding balances in the books of the assessee cannot be taxed under section 41(1) - Hence, the appeal filed by the revenue is dismissed.
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