2000 (9) TMI 223 - AT - Income Tax

Summary

The Department appealed against the deletion of an addition of Rs. 5,66,845 for outstanding liabilities written off in the assessment year 1989-90. The assessee justified the deletion, stating the liabilities were not actually written off in the books for the year under appeal but in the following year. The Tribunal found no infirmity in the CIT(A)'s order, citing the apex court's decision that unilateral entry in accounts does not trigger income tax liability. The Department's appeal was dismissed, and the assessee's cross-objection was allowed.