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TMI Blog2015 (1) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the Revenue and Shri A.K. Tibrewal, F.C.A., represented on behalf of the assessee. 3. In the Revenue's appeal, the Revenue has raised the following ground:- "Whether on the facts and in the circumstances of the case, the ld. CIT(Appeals)-VIII, Kolkata was justified in law in deleting the addition made on account of cessation of the liability shown in parts by the assessee and not bringing the whole amount in to the net of taxation under section 41(1) of the I.T. Act, 1961". 4. At the time of hearing, it was submitted by the ld. JCIT, Sr. D.R. that the only issue in the Revenue's appeal was against the action of the ld. CIT(Appeals) in deleting the addition made by the Assessing Officer representing the cessation of the liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited specialists and other requirements. Consequent to this, the Russian Company had paid the assessee an advance of 2,50,000 US Dollars. It was the submission that the amount of Rs. 33,37,011/- was the opening balance as on 01.04.2006. It was the submission that during the year the assessee had incurred the expenditures in respect of the agreement and in compliance of the same had adjusted the amount of Rs. 6,26,128/- from the said advance as per the amendment to the agreement dated 02.04.2001 made vide letter dated 18.12.2006. It was the submission that the balance remained as advanced and was shown as advance in the accounts of the assessee. It was the submission that the balance amount of Rs. 27,10,883/- did not cease and consequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of Sugauli Sugar Works (P) Limited reported in 236 ITR 518 (SC), wherein it has been categorically held that "even unilateral writing off of the liability in the books of account does not amount to cessation or remission of liability to bring into the net of taxation under section 41(1) of the Income Tax Act, 1961". In the present case, the amount has any way not been written off. It remains as a liability in the books of the assessee. In these circumstances, we are of the view that the finding of the ld. CIT(Appeals) is on right footing and does not call for any interference.
7. In the result, the appeal of the Revenue stands dismissed.
Order pronounced in the open Court on 30th January, 2015. X X X X Extracts X X X X X X X X Extracts X X X X
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