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TMI Blog2013 (10) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Order of learned CIT(A) is against law having failed to deal with judgments given in written argument before him." 3. At the time of hearing before us, it is stated by the learned counsel that the Assessing Officer made the addition of Rs. 7,94,592/- in respect of the liability shown by the assessee in the name of Shri Banarsi Lal S/o Shri Laxman Das in its balance sheet. He submitted that the liability is with regard to goods purchased by the assessee from this party in the earlier years and the credit was outstanding in the balance sheet of 31st March, 2007. He submitted that the assessee has not denied the liability. However, during assessment proceedings, the assessee could not produce the confirmation from the creditor because of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) should be sustained. 5. We have carefully considered the arguments of both the sides and perused the material placed before us. After considering the arguments of both the sides and the facts of the case, it is evident that now the controversy is very narrow because it is the stand of both the parties that the liability has ceased. The only dispute is with regard to the year of cessation of liability. As per Assessing Officer, the liability ceased in the financial year ended on 31st March, 2007 while, as per assessee, liability ceased in the financial year ended on 31st March, 2013. The assessee has written back the liability in its books of account for the FY 2012-13. That Section 41(1) reads as under:- "41. (1) Where an allowance or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e benefit in respect of any such trading liability by way of remission or cessation thereof" shall include the remission or cessation of any liability by a unilateral act by the first mentioned person under clause (a) or the successor in business under clause (b) of that sub-section by way of writing off such liability in his accounts.] [Explanation 2].--For the purposes of this sub-section, "successor in business" means,-- (i) where there has been an amalgamation of a company with another company, the amalgamated company; (ii) where the first-mentioned person is succeeded by any other person in that business or profession, the other person; (iii) where a firm carrying on a business or profession is succeeded by another firm, the other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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