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2015 (5) TMI 991 - ITAT CHENNAI

2015 (5) TMI 991 - ITAT CHENNAI - TMI - Addition of addition u/s 41 - Held that:- In this case, when the liability continues, the creditor can recover the amount otherwise than a civil suit. The creditor has every right to recover the money whenever an opportunity comes to it outside the court of law. Moreover, the assessee accepts the liability in the balance sheet as on 31.3.2007. It is well settled principles of law that a liability if accepted in the balance sheet filed in the income tax pro .....

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the orders of the lower authorities are set aside and the Assessing Officer is directed to delete the addition of ` 3,19,901/- made u/s 41(1) of the Act. - Decided in favour of assessee. - I.T.A.No.338/Mds/2015 - Dated:- 22-5-2015 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER Appellant by : Shri T.S.Lakshmi Venkataraman, FCA Respondent by : Shri A.V. Sreekanth, JCIT ORDER PER N.R.S.GANESAN, JUDICIAL MEMBER This appeal of the assessee is directed against .....

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s Vasavi Agencies, for the outstanding amount shown in the balance sheet as on 31.3.2007. Since the assessee could not furnish the details, the Assessing Officer has taken the entire outstanding credit of 3,19,901/- as income of the assessee u/s 41(1) of the Act. According to the ld. Representative, the assessee has shown the entire liability in the profit & loss account, therefore, there is no cessation of liability as claimed by the Assessing Officer. The creditor may come and collect the .....

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