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2022 (4) TMI 17 - AT - Income TaxCessation of liability relating to sundry creditors as per the provisions of section 41(1) - claim of expenditure relating to the impugned creditors CIT-A deleted - HELD THAT:- The expenditure relating to the impugned creditors resulting only in work in progress and no sales having been made by the assessee, surely the same has not resulted in any claim by way of expenditure made by the assessee in its assessment for the years to which it relates, being accumulated in work in progress account only. The aforesaid facts were not disputed by the Ld. DR before us who also fairly admitted that no expenditure had been claimed by the assessee relating to the impugned creditors in view of the said facts. Having said so, there arises no question of invoking the provision of section 41(1) of the Act in the present case at all since it fails to fulfill the basic criteria enunciated in the said section. Therefore, for this reason alone, the addition made u/s. 41(1) by the Assessing Officer deserves to be set aside and order of the Ld.CIT(A) be upheld - we uphold the order of the Ld. CIT(A) deleting the addition made to the income of the assessee u/s 41(1) - Decided in favour of assessee.
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