9911796707
TMI Blog2012 (6) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal by the revenue is directed against the order dated 23.6. 2010 of the CIT(A) for the AY 2007-08. 2 The only effective ground raised by the revenue in this appeal is as under: "On the facts and in the circumstances of the case and in law the ld Cit(A) has erred in deleting the addition of `. 7,55,806/- made u/s 41(1) of the I T Act on account of cessation of liabilities as the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the liabilities in the books of account as still payable to the creditors and unless and until the assessee itself treated the same as ceased to exist, it cannot be treated as cessation of liabilities by the Assessing Officer by invoking the provisions of sec. 41(1) of the I T Act. He has relied upon various decisions of the Hon'ble High Courts as well as the order of the Tribunal in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o treat the liability as non existence, provisions of sec. 41(1) cannot be invoked. So long as the assessee is accepting the liability and showing the same in the books of account, it cannot be treated as cessation of liability unless it is proved by some material that the liability actually ceased to exist. 5 In the case in hand, the Assessing Officer has not brought out a case by investigation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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