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2014 (2) TMI 85 - ITAT MUMBAIDeletion made u/s 41(1) of the Act - Cessation of liability – Notice issued u/s 133(6) of the Act - Held that:- The closing balance cannot be considered as remission or cessation by the party, even after three years of outstanding balance, so as to qualify as income u/s 41(1) when the assessee is paying the liability and there is nothing to indicate, even remotely, that the creditor has given up his claim - The assessee was supposed to pay Rs.8.52 lakh to the party, out of which a sum of Rs.1.45 lakh has paid either by cheque or by cash - When the position is so and the assessee is regularly making payment to such party, there can be no question of treating the closing balance as income u/s 41(1) of the Act - the amount in respect of these four parties cannot be considered as income u/s 41(1) of the Act - We, therefore, upheld the impugned order on this issue – Decided against Revenue.
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