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2018 (3) TMI 1357 - HC - Income TaxAdditions u/s 41(1) - credit balance of creditors - unclaimed credit liability - it contended that, once the addition on account of unexplained credit added in A.Y. 2007-08 the same amount could not be added in A.Y. 2008-09 - Held that:- there is nothing on record to show that there have been cessation of trading liability or that some benefits have been taken in respect of the trading liability by the assessee. The necessary ingredients for invoking the provisions of Section 141 are two folds; firstly, there should have been a cessation of the trading liability and secondly that some benefit in respect of the trade liability had been taken by the assessee. Out of total amount of ₹ 1 crore and odd, approximately 86 lacs had still remained unrecoverable as the creditors were untraceable. This is the finding recorded. In any event, it could not be said that the liability had ceased or that any advantage had been taken by the assessee on account of this. No addition could be made - Decided against the revenue.
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