9911796707
TMI Blog2025 (2) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... UJARAT HIGH COURT] wherein it has been held that while the assessee has continued to declare the trading liability in its books of accounts no benefit can be said to have been obtained in respect of such trading liability by way of remission or cessation thereof and thus the requirement of Section 41(1) is not satisfied. We further find that for AY 2012-13 in the assessee's own case ITAT, Kolkata Bench has decided the specific issue of old liabilities and creditors were examined and AO did not raise any doubt or suspicion about the list of creditors except for certain payables. Hence, once such assessment is complete the revenue authorities cannot in a subsequent year take a diametrically opposite view and consider the same to be ingenuine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is that the assessee filed its return of income declaring total income of Rs. 49,01,900/- for AY 2015-16. The case of the assessee was selected for limited scrutiny, notice u/s 143(2) was issued, subsequently notice u/s 142(1) read with Section 129 of the Act was issued. The case was heard and after that the AO has made following additions which are as follows: i) Addition u/s 41(1) of the Act Rs. 50,80,308/- ii) Addition u/s 69 of the Act Rs. 3,28,516/- iii) Addition u/s 56(2)(vii) of the Act Rs. 1,90,000/- Total addition Rs. 55,98,824/- 4. The assessee has preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been partly allowed by upholding the order of AO towards addition of Rs. 44,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- for registration of land at Hatiara and the property was got registration on 2nd July, 2015 i.e in the next financial year. The Ld. A.R further submits that it was accounted for under Fixed assets in that order itself. He has filed ledger and number of demand draft and details. 6. Contrary to that the Ld. DR supports the impugned order. 7. Upon hearing the submission of the ld. Counsel of the respective party, we have perused the case of the assessee and order of AO and Ld. CIT(A) and find that the first ground of the dispute is regarding the addition of Rs. 42,07,739/- u/s 41(1) of the Act. It is pertinent to mention herein that the liability was duly disclosed in the books of account of the assessee. The assessee in its explanation v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings for enforcement of the debt even after expiry of the normal period of limitation as provided in the Limitation Act. - the views taken by the Tribunal are totally opposite the ones taken by the Supreme Court mentioned above and consequently are not tenable. The order of the tribunal below is thus, set aside and the AO is directed to delete the aforesaid amount involved from the income of the assessee for the relevant year - Decided in favour of assessee." 8. We further find that for AY 2012-13 in the assessee's own case ITAT, Kolkata Bench has decided the specific issue of old liabilities and creditors were examined and AO did not raise any doubt or suspicion about the list of creditors except for certain payables. Hence, once s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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