9911796707
TMI Blog2018 (3) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Appellate Tribunal dated 19.08.2011 for the assessment year 2007-08. The questions of law sought to be answered are as hereunder: "(2) Whether the Hon'ble ITAT, erred in law in deleting the addition made in A.Y. 2007-08 on account of Sundry Creditory relying on the credit balances shown in A.Y. 2008-09 which were not disputed by the department ignoring the law that the principle of res judicata is not applicable in Income Tax. Further, once the addition on account of unexplained credit added in A.Y. 2007-08 the same amount could not be added in A.Y. 2008-09 ? (3) Whether Hon'ble ITAT erred in law in deleting the addition made on account of unclaimed liability ignoring the fact that unclaimed credit liability which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first-mentioned person) and subsequently during any previous year ? a. the first-mentioned person has obtained, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or some benefit in respect of such trading liability by way of remission or cessation thereof, the amount obtained by such person or the value of benefit accruing to him shall be deemed to be profits and gains of business or profession and accordingly chargeable to income-tax as the income of that previous year, whether the business or profession in respect of which the allowance or deduction has been made is in existence in that year or not; or b. the successor in business has obtained, whether in cash or in any other manner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding liability or that some benefits have been taken in respect of the trading liability by the assessee. The necessary ingredients for invoking the provisions of Section 141 are two folds; firstly, there should have been a cessation of the trading liability and secondly that some benefit in respect of the trade liability had been taken by the assessee. Out of total amount of Rs. 1 crore and odd, approximately 86 lacs had still remained unrecoverable as the creditors were untraceable. This is the finding recorded. In any event, it could not be said that the liability had ceased or that any advantage had been taken by the assessee on account of this. Learned counsel for the assessee has placed reliance on a decision of the Karnataka High C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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