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No Cessation of Liability u/s 41(1) as debt not written off in books
Case Law Details
- Case Name
- Total Environment Building Systems Pvt Ltd Vs DCIT (ITAT Bangalore)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13
- Courts
- All ITAT, ITAT Bangalore
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Total Environment Building Systems Pvt Ltd Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that unless the debt has been written off in the books of accounts of both the assessees, it cannot be said that “that cease to exist”. Hence, as assessee has not written off the same in its books of accounts and it cannot be said that the debt ceased to exist. Thus, amount cannot be considered as cessation of liability u/s. 41(1) of the Income Tax Act.
Facts- AO while passing assessment order has disallowed the Value Added Tax Provision at the year end amounting to Rs.42,52,413/- on the ground that the...
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