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2019 (2) TMI 1724 - AT - Income TaxCessation of liability addition u/s 41(1) - claim of sundry creditors liability in books of account since 2009-10 - HELD THAT:- Then is no dispute between the parties the very amount stood allowed as a liability in the past very many assessment years involving both summary as well as regular assessments. The assessee’s books have also not indicated the impugned sum as a case of cessation of liability. Hon'ble Gujarat high court’s judgment in CIT vs. Nitin S Garg [2012 (5) TMI 30 - GUJARAT HIGH COURT has placed reliance on much a celebrate judgment of hon'ble apex court in CIT vs. Sugauli Sugar Works (P) Ltd. [1999 (2) TMI 5 - SUPREME COURT] to hold that the mere fact of a liability having continued to be shown for very many years would not attract section 41(1) since it is for the Assessing Officer has who has to show that concerned assessee has drawn any benefit by way of cessation or remission thereof. We further make it clear that CIT(A)’s above extracted detailed discussion has examined all the facts as well as the relevant legal position at length which has nowhere been rebutted from the Revenue side. We therefore conclude that the CIT(A) has rightly reversed the assessment findings holding the amount in question to be a case of cessation of liability u/s 41(1) - Decided in favour of assessee.
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