Tag: cessation of liability
Singing of the balance sheet itself is construed as acknowledgement of debt. No cessation of liability u/s 41 if trade payables shown as outstanding in the balance sheet – ITAT In a recent judgment, ITAT has held that singing of the balance sheet itself is construed as acknowledgement …
No remission or cessation of liability u/s 41(1) if trading liability is continued to be declared in books of account ABCAUS Case Law Citation:ABCAUS 3758 (2023) (05) ITAT Important Case Laws relied upon:Vardhman Overseas Ltd. 343 ITR 408 (Del)Dattatray Poultry Breeding Farm P. Ltd. vs. ACIT (2019) 104 …
Sundry Creditors written off by debiting to software account was not income as the software purchased was of no use and no depreciation was claimed ABCAUS Neutral Case Law Citation:ABCAUS 3681 (2023) (03) ITAT In the instant case, the assessee had challenged the order passed by the CIT(A) …
Cessation of Liability u/s 41 – Calcutta High Court demystifies the Income TaxLaw ABCAUS Neutral Case Law Citation:ABCAUS 3678 (2023) (02) HC Important Case Laws relied upon by parties:Commissioner of Income Tax vs. Sugauli Sugar Works Private Limited 1999) 236 ITR 519Chief Commissioner of Income Tax vs. Kesaria …
Liability to pay creditors does not ceases merely because assessee could not furnish confirmation of one creditor out of several parties ABCAUS Case Law CitationABCAUS 3498 (2021) (04) ITAT In the instant case, the assessee had challenged the order passed by the CIT(A) in confirming addition u/s 41(1) …
Addition for bogus purchases as unexplained cash credits whether u/s 68 or u/s 41(1) as cessation of liability? No additions on opening balances ABACUS Case Law CitationABCAUS 3382 (2020) (09) ITAT In this case appeal was preferred by the Revenue against the order of Commissioner of Income Tax …
Addition for Bogus creditors converted into cessation of liability as goods were defective and vendors had not shown amount as receivable proving that liability had ceased. ABCAUS Case Law Citation:ABCAUS 3171 (2019) (10) ITAT The appellant assessee was an individual and was engaged in the trading business. The …
No addition u/s 41(1) can be made unless liability is written off in accounts. AO has to brought evidence on record to show that liability has ceased ABCAUS Case Law Citation: ABCAUS 2940 (2019) (05) ITAT Important Case Laws Cited/relied upon by the parties CIT v. Bhogilal Ramjibhai …
Section 41(1) addition can not be invoked without any material evidence. High Court upheld quashing of addition made on account of remission/cessation of trade liability. ABCAUS Case Law Citation: ABCAUS 2903 (2019) (05) HC The appeal was filed by the Revenue against the order passed by the Income …
Waiver of loan not cessation of trading liability u/s 41(1). Provision of Section 28 (iv) do not apply to benefits received in cash-Supreme Court The instant appeal(s) were filed by the Income Tax Department (Revenue/appellant) against the judgment passed by the High Court whereby the Division Bench of …
