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TMI Blog2019 (5) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... cessation of liability. In the absence of any such verification, the Assessing Officer could not have added such amount of credit for taxation. Therefore, the Tribunal has rightly held that in the absence of any material evidence, the assessing authority could not have invoked Section 41(1). We see no error or illegality in the order passed by the ITAT. No substantial question of law would arise for consideration in the appeal - appeal is dismissed. - I.T.A. NO. 791 OF 2018 - - - Dated:- 1-4-2019 - MR. JUSTICE RAVI MALIMATH And MR. JUSTICE S.G. PANDIT APPELLANT: SRI E.I. SANMATHI, ADVOCATE RESPONDENT: NONE JUDGMENT Aggrieved by the order dated 01.06.2018 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggrieved by the said order filed appeal before the ITAT, B Bench, Bengaluru in ITA No. 1386 of 2017. The ITAT dismissed the appeal filed by the revenue, against which the present appeal is filed. 3. Heard the learned counsel for the appellants and perused the appeal papers. 4. Learned counsel for the appellants would submit that the tribunal failed to appreciate that the assessee had failed to furnish PAN numbers and address of the creditors for verification. It is further submitted that the ITAT committed an error in accepting additional evidence. Hence, prays for admitting the appeal to consider the substantial questions of law suggested in the memorandum of appeal. 5. having heard the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITAT. The ITAT also rejected the appeal of the revenue holding that the Appellate Authority has rightly deleted the addition nothing that there is no evidence to show remission of liability or cessation of liability. 6. Section 41(1) of the Act reads as follows: (1) Where an allowance or deduction has been made in the assessment for any year in respect of loss, expenditure or trading liability incurred by the assessee (hereinafter referred to as the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purposes of this sub-section, successor in business means,- (i) where there has been an amalgamation of a company with another company, the amalgamated company; (ii) where the first-mentioned person is succeeded by any other person in that business or profession, the other person; (iii) where a firm carrying on a business is succeeded by another firm, the other firm; (iv) where there has been a demerger, the resulting company. To attract the above provision, the Assessing Officer, based on available material ought to have verified as to whether there is any remission or cessation of liability. In the absence of any such verification, the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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