During assessment proceedings, Assessing Officer held\u00a0 that assessee had failed to prove genuineness of outstanding credit balance pertaining to one PSM. He held\u00a0 that said party had categorically denied entering into any transaction with assessee and even bank statement of said party revealed no transaction undertaken with assessee.\u00a0\u00a0 Assesssing Officer held that said creditor was a bogus creditor and therefore, proceeded to add outstanding balance reflected in accounts of said party by assessee by invoking provisions of section 41(1), holding that liability had ceased to exist. Commissioner (Appeals)\u00a0 held that in preceding assessment year 2012-13 when assessee had undertaken transactions with said party leading to impugned outstanding credit balance, transactions had been found to be genuine by Assessing Officer. Commissioner (Appeals) held that party being genuine, there could be no case of cessation of any liability relating to said party so as to invoke section 41(1) and deleted disallowance so made. On appeal the Tribunal affirmed the order of the CIT(A).\u00a0 Expenses claimed\u00a0 order of CIT(A) deleting the addition is affirmed.\u00a0\u00a0 (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding credit balance-Expenses claimed-Order of CIT(A) deleting the addition is affirmed-Order of CIT(A) deleting the addition is affirmed. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43540","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bkg","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43540"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43540\/revisions"}],"predecessor-version":[{"id":43541,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43540\/revisions\/43541"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}