Held that since proceedings against assessee with respect to recovery of the amounts were still in progress, such amount could not be treated as ceased liabilities under section 41(1)(a) of the Act. (AY. 2014-15)
Dy. CIT v. Surbhit Impex (P.) Ltd. (2021) 191 ITD 711 / 206 DTR 105 / 214 TTJ 406 (Mum.)(Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Payment was not made due to supply of inferior quality goods-Recovery of proceedings were pending-Addition cannot be made as cessation of liability.