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2019 (12) TMI 1253 - AT - Income TaxCessation of liability u/s 41(1) - A.O. has observed that assessee could not bring any confirmation from the creditors nor could it produce supporting evidences to prove the liability in respect of balance creditors - CIT-A deleted the addition - HELD THAT:- Assessee company was engaged in the business of manufacture of dyes, intermediates. But it became defunct and not carried out any business operations since March, 2005. There being no business activity, there was no income or expenditure, it was submitted to the A.O. also that the liability was on account of money payable to the creditors in respect of goods and services supplied by them prior to March, 2005 and that during the year under consideration, there has been no cessation or remission of any trade liability and that the appellant has not obtained any benefit either in cash or otherwise on account of cessation or remission of trading liability. Case followed DATTATRAY POULTRY BREEDING FARM PVT LTD. [2019 (4) TMI 1171 - GUJARAT HIGH COURT] and BHOGILAL RAMJIBHAI ATARA [2014 (2) TMI 794 - GUJARAT HIGH COURT] - Decided in favour of assessee.
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