The Tribunal held that since the assessee having filed confirmation from the creditor, ledger extract and also the data of the creditor company is available on the website of Ministry of Corporate Affairs which shows that the said company was in active status, AO could not make the addition under s. 68. The impugned addition is not sustainable also for the reason that the said unsecured loan has been treated as cessation of liability and offered to tax under S. 41(1) in the subsequent assessment year. (AY.2014-15).
Popular Foundations (P) Ltd. v. ACIT (2022) 209 DTR 18 / 215 TTJ 260 (Chennai)(Trib)
S. 68 : Cash credits-Trade advance-Outstanding for more than three years-Classified as unsecured loan-Confirmation/ledger extract from creditor filed-Creditor was active company as per MCA website-Unsecured loan offered to tax u/s. 41(1) in subsequent year-Same loan cannot be treated as income for impugned year. [S. 41(1)]