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2018 (6) TMI 897 - AT - Income TaxAdditions u/s 41(1) for cessation of liability - Held that:- Neither the assessee nor the creditor have written off the liability from their Books of Accounts. In such circumstances simply because the liability is outstanding for quite some years the liability does not seize to exist - In the case of CIT v. Smt Sita Devi Juneja [2009 (12) TMI 34 - PUNJAB AND HARYANA HIGH COURT] considering judgment of CIT v. Sugauli Sugar Works (P.) Ltd [1999 (2) TMI 5 - SUPREME COURT] held that mere entry in the books of accounts of the debtor made unilaterally without any act on the part of the creditor will not enable the debtor to say that the liability has come to an end - thus we hold that there is no cessation of liability in the case of the assessee - Decided in favor of assessee. Disallowance of expenses and discount allowed by the assessee - Held that:- As additional evidences were filed along with a petition for admission of the same and in view of the additional evidences the matter may be examined afresh - hence we are of the considered view that since these additional evidences go to the root of the matter and assessee is prevented with reasonable cause in not submitting the same while completion of the assessment, we admit the additional evidences and restore the issue to the file AO for examining afresh - thus allowed for statistical purposes. Disallowance u/s. 40(a)(i) - remittance of tds - Held that:- The assessee submitted that, assessee has deducted TDS in respect of the expenditure and remitted before the due date for furnishing of return of income u/s. 139(1) and therefore no disallowance is required to be made - hence, this issue is restored to the file of the AO who shall examined afresh in the light of the latest legal position and decide in accordance with law, after providing adequate opportunity of being heard to the assessee - thus allowed for statistical purpose.
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