Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 1775 - AT - Income TaxAddition u/s 41(1) in respect to outstanding sundry Creditors - cessation of liability - HELD THAT:- Admittedly in the year under consideration i.e. the assessment year 2010-11 by way of remission or cessation no gain has accrued or arisen to the assessee in the given facts and circumstances of the case. Admittedly, as given in the chart above by the assessee before us, the assessee had already declared the credit to the Profit and Loss Account on account of cessation of liability under cessation of liability u/s 41(1) on account of sundry creditors and offered to tax. Assessee fairly agreed that this fact can be verified by the AO. Assessee's Counsel fairly agreed for verification of factum of offering of this amount of sundry creditors as income in their respective years, the AO can verify the same. However, in this year no addition can be made u/s 41(1) of the Act and we delete the addition . Disallowance of foreign travel expenses - Expenses relatable to partner of the firm - HELD THAT:- Expenses relatable to partner of the firm can be allowed because they have gone for business purpose also and i.e. for studying new designs, new concepts of construction etc. In view of the above we direct the AO to allow the expenses of partners. Matter is remanded back to the file of the AO. This issue of assessee's appeal is partly allowed.
|