Tribunal held that CIT(A) had recorded a categorical finding that assessee had paid all sundry creditors in subsequent financial year and proof for such payment had been furnished. AO had made addition towards sundry creditors without bringing on record any evidence to prove that there was cessation of liability in impugned financial year and also, assessee had derived benefit out of such cessation of liability. (AY.2011-12)
Scrabble Entertainment Ltd. v. ACIT (2018) 169 DTR 51 / 193 TTJ 418 (Mum.) (Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors were paid in subsequent year- Deletion of addition is held to be justified.