Debtor’s Unilateral Write-Off Isn’t Cessation of Liability: ITAT Delhi

Gurmeet Singh Sethi Vs ITO (ITAT Delhi) ITAT Delhi: Unilateral Write-Off by Debtor Does Not Attract Cessation of Liability Under Section 41(1) The Income Tax Appellate Tribunal (ITAT), Delhi bench, allowed the appeal filed by the assessee, Gurmeet Singh Sethi, for Assessment Year (AY) 2012-13, deleting several additions made by the Assessing Officer (AO) and sustained by the Commissioner of Income Tax (Appeals) (CIT(A)). The key dispute centered on the applicability of Section 41(1) concerning the cessation of liability. Addition on Cessation of Liability Rs.1,12,75,060 The AO made an addition...