TMI Blog2010 (10) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... t clear. There was not even a confirmation letter coming in support of the liabilities. Apart from this, the conduct of the assessee has to be seen. He writes off in a subsequent year where the department says, it was the year of loss and the assessing officer has made a specific comment that the writ off has been made only in the year of loss so that if does not have any tax implication. The appeal is accordingly dismissed - 719/2010 - - - Dated:- 28-10-2010 - MR. JUSTICE A.K. SIKRI, MR. JUSTICE SURESH KAIT,JJ. Through Mr. R.M. Mehta, Advocate Through Mr. Sanjeev Rajpal, Advocate A.K. SIKRI,J. (ORAL) 1. In this appeal, the appellant/assessee seeks to challenge the order dated 11th December, 2009 passed by the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recoveries." 4. The Assessing Officer also took note of the fact that ultimately all these creditors were written back by the assessee in the assessment year 2003-04. Significantly, in that year, the assessee had shown loss in the income and, therefore, it was convenient and easy for the assessee to correct the aforesaid amount after writing back in that year. As mentioned above, the CIT (A) as well as ITAT affirmed the aforesaid addition. 5. Learned Counsel for the assessee argues that the conditions for applicability of Section 41 (1) of the Act for obtaining the benefit of remission or cession of the liability were not satisfied in the instant case. He argues that no material was brought on record by the Assessing Officer to show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) Liquidator, Mysore Agencies (P) Ltd. Vs . CIT, 114 ITR 853 (Kar.) (v) CIT Vs . G.P. International , 325 ITR 25 (P H) (vi) CIT Vs . Delhi Automobiles, 272 ITR 381 ( Delhi ) 7. While there is no dispute about the proposition of law laid down in the aforesaid judgments for applicability of Section 41 (1) of the Act, what is conveniently omitted by the learned counsel for the appellant is that the authorities below have found that though the purported creditors' liabilities were shown in record for number of years, none of these creditors ever took any steps for recovery of their amount from the assessee. Ultimately the assessee himself had written off these creditors in his assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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