In absence of any unilateral or bilateral w/off, no addition sustainable on account of cessation of liability

Brief of the Case ITAT Jaipur held In the case of M/s Brothers Pharma Pvt. Ltd. vs. ITO that the case laws referred by the CIT (A) are squarely distinguishable on the ground that there was a written off either by the assessee or bilaterally, but in the given case no such w/off has been made by the party nor it was agreed between the parties. A bare reading of Section 41(1) makes it clear that the underlying idea behind introduction of this provision is that the legislature wanted to tax the amount of deductions/allowances which an assessee had already taken/allowed in the earlier years but the...