Dismissing the appeal of the Revenue the High Court held that the creditors had given a written reply in response to the summons reiterating their liability as also the fact that the assessee had settled some of the creditors even after March 31, 2001. The duty on the AO is to prove that the liability has ceased to exist which he had failed to do. SLP of Revenue is dismissed on account of delay of 450 days and also on merit. (AY.2001-02)
PCIT v. Soorajmull Nagarmull (2024) 466 ITR 248/ 164 taxmann.com 353/300 Taxman 84 (SC) Editorial: PCIT v. Soorajmull Nagarmull (2022) 145 taxmann.com 245 (2023)457 ITR 470/ 335 CTR 832/ 226 DTR 265 (Cal)(HC)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-No evidence of cessation of Liability-Order of ITAT is affirmed by High Court-SLP of Revenue is dismissed on account of delay of 450 days and also on merit. [Art. 136]