Allowing the appeal of the assessee the Tribunal held that ,amount received as advance or deposit was written off cannot be assessed as remission or cessation of liability. (AY. 2007-08)
Poona Bottling Company (P.) Ltd. v. ACIT (2019) 175 ITD 634 (Pune)(Trib.)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability-Business of bottling-cum-manufacturing of soft drink-Advances/deposits towards security against bottles & cases-Written off-Addition cannot be made as remission or cessation of liability. [ S. 32 ]