Dismissing the appeal of the revenue the Tribunal held that outstanding trade payables in its books of account for last three years addition cannot be made as remission or cessation of trading liability. ( AY. 2013-14)
DCIT v. Sri Radhakrishna Shipping Ltd. (2019) 179 ITD 139 (Mum) (Trib.)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Trade payables outstanding for more than three years in the books – Addition cannot be made as remission or cessation of trading liability . [ S.68 ]