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Shri R. Badrinath Versus. The Asstt. Commissioner of Income-tax

2015 (5) TMI 991 - ITAT CHENNAI

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 c .....

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nder the Limitation Act. Therefore, the period of limitation for recovery of the amount would run from the date on which the liability is accepted in the balance sheet which was filed in the income tax proceedings. Hence, at no stretch of imagination .....

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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 A .....

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tax (Appeals), Salem, dated 28.11.2014 and pertains to assessment year 2007-08. 2. Shri T.S.Lakshmi Venkataraman, ld. Representative for the assessee submitted that the assessee is engaged in the business of dealership with M/s Hindustan Lever Produc .....

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mount 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. Repre .....

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ccording to the ld. Representative, it cannot be added as income u/s 41(1) of the Act. 3. On the contrary, Shri A.V.Sreekanth, ld. Departmental Representative submitted that inspite of repeated opportunities given to the assessee, the assessee could .....

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or had also not taken any effort to collect the dues from the assessee. Therefore, there is no liability in existence. Hence, the amount shown as liability in the balance sheet as on 31.3..2007 was rightly taken as income of the assessee u/s 41(1) of .....

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overy of the amount by the creditor is three years. After expiry of three years period, the creditor may not be able to enforce the payment through court of law. However, in this case, when the liability continues, the creditor can recover the amount .....

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