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2018 (4) TMI 741 - AT - Income TaxAddition u/s 41(1) - accounts not reconciled - remission or cessation of a trading liability - Held that:- In the case on hand, the reason why M/s. C.D.Steel chose to debit the account of M/s. Alisha Steel P. Ltd., is not known. The AO should have examined this issue. Just because the accounts have not been reconciled, the AO cannot make an addition u/s 41(1) of the Act. Thus following the propositon of law laid down by the Hon’ble Delhi High Court in the case of CIT vs Shri Vardman Overseas Ltd (2011 (12) TMI 77 - DELHI HIGH COURT) and the Bangalore Bench of the ITAT in the case of M/s Glen Williams (2015 (8) TMI 974 - ITAT BANGALORE) delete this addition and allow this ground of the assessee.
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