During assessment proceedings, Assessing Officer held  that assessee had failed to prove genuineness of outstanding credit balance pertaining to one PSM. He held  that said party had categorically denied entering into any transaction with assessee and even bank statement of said party revealed no transaction undertaken with assessee.   Assesssing Officer held that said creditor was a bogus creditor and therefore, proceeded to add outstanding balance reflected in accounts of said party by assessee by invoking provisions of section 41(1), holding that liability had ceased to exist. Commissioner (Appeals)  held that in preceding assessment year 2012-13 when assessee had undertaken transactions with said party leading to impugned outstanding credit balance, transactions had been found to be genuine by Assessing Officer. Commissioner (Appeals) held that party being genuine, there could be no case of cessation of any liability relating to said party so as to invoke section 41(1) and deleted disallowance so made. On appeal the Tribunal affirmed the order of the CIT(A).  Expenses claimed  order of CIT(A) deleting the addition is affirmed.   (AY. 2014-15)