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2018 (4) TMI 623 - AT - Income TaxAddition u/s. 41(1) being loan taken - Held that:- The said liability has been appearing in the balance sheet of the assessee. The assessee has not written off the same as irrecoverable. Confirmation from the party has also been produced. Furthermore, it has been brought on record that the amount involved was a loan taken for acquisition of fixed assets and it was not on account of trading account. Hence, it is clear that the authorities below had not given any finding that for this amount any allowance or deduction has been made in the earlier year in respect of loss, expenditure of trading liability. These are the prerequisites for invoking section 41(1). As find that the assessee’s submissions are correct inasmuch as neither the amount involved was coming under the definition of items liable to be taxed u/s. 41(1) nor it has been cogently proved that there was any cessation thereof. - Decided in favour of the assessee.
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