TMI Blog2016 (8) TMI 1464X X X X Extracts X X X X X X X X Extracts X X X X ..... , the revenue has failed to prove the remission or cessation thereof. So, section 41(1) has no applicability in the case of the assessee. Resultantly, addition made on this account has rightly been deleted by CIT(A) - Decided in favour of assessee. Disallowance of expenses u/s. 37(1) - HELD THAT:- CIT(A) has allowed substantial relief to assessee after considering the detail submissions of the assessee in this regard. These submissions were not before AO and these constitute additional evidences for which opportunity should be provided to AO for examination. Therefore, this issue of disallowance of expenses is remitted back to the AO so as to afford another opportunity to revenue in this regard. - ITA No.5816/Mum/2012 (A Y: 2009-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer ( AO ) vide order dated 23.12.2011. The assessee declared the loss of ₹ 13,07,21,418/- in return of income which was recomputed at income of ₹ 14,68,55,429/- after making certain additions and disallowances. The assessee was engaged in the business of manufacturing of steel profiles and coils during assessment year in question. It obtained unsecured loans from agents/dealers amounting to ₹ 9,48,44,079/-, the details and confirmation of which was called for by the AO. The assessee failed to file the requisite confirmation in respect of unsecured loans amounting to ₹ 4,11,27,086/- and accordingly, AO treated the same as income of the assessee and made additions under section 41(1). Similarly, assessee failed to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and addition on this account were deleted. Similarly, the assessee made various submissions to reconcile the expenses claimed u/s. 37(1). He filed the detailed submissions as to expenses incurred on purchase of raw material, manufacturing expenses and other expenses and elaborately explained and substantiate its claim to explain the nature as well as amount of expenses. Upon perusal of submission, CIT(A) allowed substantial relief to assessee on this account and disallowed only 5% of miscellaneous expenses which amounted to ₹ 8,40,718/- thereby providing major relief to the extent of ₹ 21,11,01,153/- to the assessee on this account. 5. Aggrieved by the stand of the CIT(A), Revenue is in appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot; or . Therefore, addition u/s. 41(1) can be made only in respect of remission or cessation of trading liabilities, the allowance or deduction of which has been made in the assessment for any year. The same is not the case here. The Learned counsel for the revenue fairly conceded that this section has no applicability in the instant case but addition can be sustained in other sections viz. Section 68 etc. The unsecured loan obtained by the assessee are capital in nature and do not represent any trading liability, the deduction of which has been allowed to assessee. Further, the revenue has failed to prove the remission or cessation thereof. So, section 41(1) has no applicability in the case of the assessee. Resultantly, addition made on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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