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2019 (5) TMI 1204 - HC - Income TaxRemission or cessation of liability u/s 41 - assessee was specifically asked to explain why the unclaimed credit balance should not be brought to taxation - assessee had failed to furnish PAN numbers and address of the creditors for verification - additional evidence - Appellate Authority allowed the appeal holding that the AO could not have invoked provisions of Section 41(1) in the absence of any material evidence on record - HELD THAT:- To attract the above provision, the Assessing Officer, based on available material ought to have verified as to whether there is any remission or cessation of liability. In the absence of any such verification, the Assessing Officer could not have added such amount of credit for taxation. Therefore, the Tribunal has rightly held that in the absence of any material evidence, the assessing authority could not have invoked Section 41(1). We see no error or illegality in the order passed by the ITAT. No substantial question of law would arise for consideration in the appeal - appeal is dismissed.
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