Held that the assessee had not debited the liabilities to its profit and loss account in any of the earlier years and the question of receiving any benefit, allowance or deduction by the assessee in earlier years, had not been fulfilled. Therefore, the conditions needed for the applicability of section 41(1) had not been fulfilled and the CIT(A) had rightly deleted the additions. (AY.2013-14)
ITO v. Mohinder Pal Singla (2022) 97 ITR 587 (Chd.)(Trib)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Amounts shown as sundry creditors-Deletion of addition is justified. [S. 37(1)]