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Income Tax - Highlights / Catch Notes

Home Highlights February 2013 Year 2013 This

Addition u/s 41(1) – cessation of liability - expiry of the ...

Income Tax

February 19, 2013

Addition u/s 41(1) – cessation of liability - expiry of the period of limitation prescribed under the Limitation Act could not extinguish the debt - No addition - HC

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  2. Addition u/s 41(1) - Although, enforcement of a debt being barred by limitation does not ipso facto lead to the conclusion that there is cessation or remission of liability - HC

  3. Cessation of liability u/s 41(1) - As per the explanation, the remission or cessation of any liability by a unilateral Act, is covered u/s.41(1) - additions confirmed - AT

  4. Addition u/s 41(1) on account of cessation of liability – there could be no cessation of liability solely on the ground that it is over three years old - AT

  5. Addition u/s 41(1) on account of presumed remission of liability - unless there is a cessation of liability, income cannot be added as per the provisions of Section 41(1) - AT

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  9. Addition u/s 41(1) - amount waived by TamilNad Mercantile Bank Limited representing Term Loan - waiver of loan does not amount to cessation of trading liability - No additions.

  10. Addition under sec.41(1) on account of cessation of liability - assessee has no explanation to prove that the creditors in its books of account are genuine - additions...

 

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