9911796707
TMI Blog2017 (12) TMI 1613X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to appreciate this aspect of the matter. Admittedly, the Ld. CIT(A) has not accepted the explanation that such liability was discharged in subsequent years by making payment through banking channels. We are unable to sustain this finding of the Ld. CIT(A) for the simple reasons that the banking accounts cannot be opened in vacuum. We therefore, direct the AO to delete this disallowance. Thus, this ground of the assessee's appeal is allowed. - ITA No. 714/JP/2017 - - - Dated:- 22-12-2017 - Shri Kul Bharat And Shri Vikram Singh Yadav, JJ. Assessee by : Shri Vinod Kumar Gupta (C.A) Revenue by: Shri Prem Prakash Meena (JCIT) ORDER Shri Kul Bharat, This Appeal i.e. ITA NO. 714/JP/2017 by the Assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liability of two PSUs and one private party, however, the remaining addition was sustained. Against this, the assessee is in further appeal before this Tribunal. 3. At the time of hearing, Ld. Counsel for the assessee submitted that Ground nos. 1 and 3 are general in nature. Therefore, he is not pressing the same. Thus, ground nos. 1 and 3 are dismissed as not pressed. 4. Ground no. 2 is against sustaining the addition of ₹ 37,56,733/- out of the total addition of ₹ 65,50,706/- made by the Assessing Officer by invoking the provision of section 41(1) of Income Tax Act, 1961 (hereinafter referred to as the Act). 4.1 Ld. Counsel for the assessee reiterated the submissions as made in the written synopsis. He submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of such trading liability by way of remission or cessation thereof, the amount obtained by such persons 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 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. Now, coming to the facts of the present case, the Assessing Office was of the view that liabilities are bogus and ceased to exist. In our view, the liabilities which are bogus would not be within the purview of section 41(1) of the Act; however, the trading liabilities which ceased to exist would fall within the purview of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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