No Section 41(1) Addition Without Actual Cessation of Liability

Advertisement Vidya Online Private Limited Vs ITO (ITAT Pune) No Section 41(1) Addition Without Cessation of Liability; Old Share Application Money Not Taxable u/s 68: ITAT Pune Grants Full Relief The Pune Bench of the ITAT allowed the assessee-company’s appeal for AY 2012-13, deleting all major additions made by the Assessing Officer and confirmed by the CIT(A), holding that section 41(1) cannot be invoked unless there is a clear remission or cessation of liability, and section 68 cannot be applied to opening balances not received during the year. Key findings of the Tribunal: ₹37.50 ...