Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 526 - HC - Income TaxAddition under Section 41(1) - ITAT deleted the addition - Held that:- The loan transactions were on the capital account and the writing off the loan was also on capital account and did not find place in the Profit and Loss Account. Apart from this it has been found as a matter of fact that the respondent / assessee had not got the benefit of any allowance or deduction in the assessment for any prior year in respect of loss, expenditure or trading liability incurred by the respondent / assessee. Thus the cessation of the liability by itself would not lead to the attraction of the provisions of Section 41(1) in the subsequent year (i.e., the assessment year in question) when the liability ceased to exist. The Tribunal having correctly applied the law and followed the decision in Shivali Construction (2013 (6) TMI 130 - DELHI HIGH COURT ), cannot be faulted in its decision which is impugned before us. A similar decision of this court is also reported in Commissioner of Income-Tax v. Tosha International Ltd, (2008 (9) TMI 31 - HIGH COURT DELHI ). Since the issue on law already stands settled by the said decisions of this court, no substantial question of law arises for our consideration. - Decided against revenue
|