No addition u/s 41(1) in respect of balance of creditors appearing in books of accounts at the end of relevant year

(ii) (a) Any amount is obtained in respect of such loss or expenditure, or

(b) Any benefit is obtained in respect of such trading liability by way of remission or cessation thereof

(iii) Such amount or benefit is obtained by the assessee; and

(iv) Such amount or benefit is obtained in a subsequent year.

3.3 Perusal of the assessment order reveals that the above mentioned conditions are not fulfilled in the instant case. The A.0. had not brought anything on record to prove that any amount or benefit had been obtained by the appellant during the year under consideration against liabilities which is allegedly ceased to exist. It is also an established proposition of law that onus is on the A. 0. to establish that any benefit has accrued to the appellant against alleged liabilities during the year under consideration.

The A. O had not discharged his onus.

In view of the fact that the enabling conditions of sec.41(1) are not fulfilled in this case, the A.0. had not brought any material on record to indicate that the appellant had obtained any benefit against the above said liabilities and these liabilities are still existing at the end of relevant assessment year in the books of accounts of the appellant, I am inclined to agree with the contentions of the Ld. A.R. Accordingly, addition of Rs. 1,36,76,461/- made by the A. 0. u/s 41(1) is ordered to be deleted.