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TMI Blog2023 (6) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... e balance sheet, then it does not entail invoking of provision of section 41(1) automatically. There has to be something on record that there is a cessation of liability and the entire conditions precedent for invoking section 41(1) has to be fulfilled. There is no scope of any kind of adhoc or estimated addition u/s. 41(1). No infirmity in the order of the Ld. CIT (A) in deleting the said addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs assessee did not submit any documentary evidence nor any confirmation with the creditors. 2. Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) was correct in deleting the addition made of Rs. 3,16,75,740/- without appreciating the fact that the addition was made on account of cessation of trading liability of the assessee u/s. 41 of the Income tax Act, 1961. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him in para 2.3 of the assessment order. 4. However, the Ld. AO despite noting the details of creditors having been filed by assessee, but did not submit any documentary evidences nor any confirmation from the said creditors. Accordingly, he held that, 10% of the entire amount shown under the head Sundry Creditors should be added u/s 41(1) of the Act. Accordingly, addition of Rs. 3,16,75,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y evidence or confirmation from the Sundry Creditors, then it is difficult to verify whether it was genuine and AO was justified in invoking the provision of section 41(1). 7. After considering the relevant finding given in the assessment order as well as the appellate order, we find that, nowhere the AO, or Ld. CIT (A) have discussed as to what was the details filed by the assessee before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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