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2017 (3) TMI 253 - AT - Income TaxAddition u/s 41 - creditor was in dispute - Held that:- Up on careful consideration we find that the assessing officer has disallowed the outstanding liability under section 41(1) only after issuing a notice under section 133(6). In this regard assessee had submitted that the matter with the creditor was in dispute and sub judice. In these circumstances in our considered opinion the assessing officer has not brought on record any cogent material to prove that the liability has ceased to exist When the matter is in dispute and sub judice assessee cannot be expected to get a confirmation from the creditor. In these circumstances in our considered opinion assessing officer was wrong in adding the credit under section 41(1). Accordingly, "we' hold that the addition is not sustainable. - Decided in favour of assessee
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