2012 (6) TMI 804

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ted 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 failed to prove the existence .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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 DSA Engineers (Bombay) .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Kay Bee Associates Forwarders 49823 49823 Navlakha transport TRANSPORTION 113662 113662 4.1 It is settled proposition of law that until and unless it is apparent that the liability is ceased to exist or the assessee takes a decision to treat the liabili .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X