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2016 (8) TMI 416 - AT - Income TaxAddition u/s. 41(1) - Held that:- The case of the assessee is not within the ambit of remission or cessation liability exist upon the assessee which is not waived by the assessee as well as the creditors.We are of the view that the said amount is not required to be added to the income of assessee u/s.41(1) of the Act. Therefore, these issues are decided in favour of the assessee against the revenue. Disallowance of expenditure - business was not running - CIT(A) allowed the claim - Held that:- Assessing Officer has allowed the expenditure to the tune of ₹ 17,94,594/- on account of interest, finance, depreciation, rate and taxes and audit fees whereas denied the administrative and general expenses and depreciation which has been allowed by the CIT(A). The said expenses are in the nature of preserved and protected the assets of the company and according to the section 37 of the Act the expenses incurred to preservation and protected the assets of the company are liable to be deducted. See CIT Vs. Malayalam Plantations Limited (1964 (4) TMI 9 - SUPREME Court ) Therefore, in view of the said circumstances we are of the view that the CIT(A) has passed the order judiciously and correctly which does not require to be interfere with at this appellate stage - Decided against the revenue.
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