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TMI Blog2014 (7) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 - - - Dated:- 7-7-2014 - M. R. Shah And K. J. Thaker,JJ. For the Appellant : Mrs. K. M. Parikh ORDER (Per : Honourable Mr. Justice M. R. Shah) 1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 14.08.2013, passed by the learned ITAT, Ahmedabad Bench C , Ahmedabad, in I.T.A. No. 1827/Ahd/2010 for the Assessment Year 2003-04, the appellant-Revenue has preferred the present Tax Appeal with the following proposed substantial questions of law; (i) Whether, on the facts and in the circumstances of the case, the ITAT was right in upholding the decision of the CIT(A) in deleting addition u/s.41(1) of the Act of ₹ 01,09,00,000/- made u/s. 41(1) of the Act on account of remission or ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount for assessment under Section 41(1) of the Act. However, the assessee did not offer the said amount for taxation under Section 41(1) of the Act. It appears that Ms. TAFE Limited filed a Civil Suit before the competent Court at Madras being Civil Suit No. 121 of 2003 for recovery of the aforesaid amount and the said case is pending. The Assessing Officer considered the above submissions of the assessee, however, he did not accept the contention of the assessee and added ₹ 1.09 crores to the total income of the assessee-Company by observing that as the M/s. TAFE Limited had written off the amount of ₹ 1.09, the assessee was required to offer the aforesaid amount for taxation under Section 41(1) of the Act. 3. Feeling aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending. It is also required to be noted that, as such, the assessee has not returned the outstanding liability in its Book of Accounts. Under the circumstances, when the Suit filed by M/s. TAFE Limited (Creditor) against the assessee for recovery of ₹ 1.09 crores is still pending and the assessee has continued to show the said amount as outstanding liability in its Book of Accounts, both the learned CIT(A) as well as the learned Tribunal rightly held that the aforesaid amount cannot be included in the account of the assessee under Section 41(1) of the Act. It is rightly held that there was no cessation of liability of the assessee. The question involved in the present Tax Appeal is answered by the Division Bench of this Court. The Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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