Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 944 - AT - Income TaxAddition under section 41(1) - liability of the assessee on account of amount payable to sundry creditors ceased to exist - Held that:- The expiry of the period of limitation prescribed under the Limitation Act would not extinguish the debt but it would only prevent the creditors from enforcing the debt. It has further been clearly held that obtaining by the assessee a benefit by virtue of remission or cessation is the sine qua non for the application of section 41(1). Similar view has been taken by the honourable Supreme Court in another judgment in the case of CIT v. S. I. Group India Ltd. [2015 (11) TMI 1004 - SUPREME COURT ]. Thus, taking into account totality of all the facts and circumstances of the case and the aforesaid judgments we find that the addition made by the Assessing Officer was not sustainable in the eyes of law and, therefore, it is directed to be deleted. - Decided in favour of assessee
|