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2021 (1) TMI 28 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - HELD THAT:- CIT(A) is justified in his findings that in view of the undisputed position that no dividend has been earned during the year, no disallowance is called for under section 14 A of the Act and the same does not warrant any interference. We accordingly holding so, dismiss ground numbers 1 to 4. Undisclosed sources in the form of trade creditors - CIT-A observed that remission or cessation of trading liability is governed by section 41 (1) of the Act and not by section 28 (iv) - HELD THAT:- Since the Ld. CIT(A) correctly applied the law to the facts on the case in the light of the decisions referred to by him in his order, we do not find any legal infirmity in such findings and, therefore, uphold his conclusion that unless and until there is an irrevocable cessation of liability without any possibility of the same being revived, merely because the amounts remained unpaid for a sufficiently long time is not a ground to invoke the provisions under section 41 (1) of the Act. The fact remains that so long as the assessee is acknowledging the debt, the law of limitation does not run agnistthe assessee to conclude that there is an irrevocable cessation of the liability of the assessee. We do not find any reason to interfere with the findings of the Ld. CIT(A). Appeal of the Revenue is dismissed.
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