Case Law Details
Nama Properties Ltd. Vs DCIT (ITAT Hyderabad)
In the decisions relied upon by the learned Counsel for the assessee it was held that the genuineness of the trade payables or creditors has to be examined in the year in which they originate and that unless the liability becomes unenforceable or is written off by the assessee or is given up by the other party or something is brought on record that there is cessation of liability, the same cannot be brought to tax u/s 41(1) of the Act. Therefore, they are very much applicable to the facts of the case before us and respectfully following the same, since there is no evidence that there is a cessation of liability during the relevant A.Y, we hold that it cannot be brought to tax u/s 41(1) of the Act during the relevant A.Y. The addition is accordingly deleted.
FULL TEXT OF THE ITAT JUDGEMENT
This is assessee’s appeal for the A.Y 2012-13 against the order of the CIT (A)-12, Hyderabad, dated 10.08.2017
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