No addition u/s 41(1) in absence of Evidence of Remission or Cessation of Liability

ITO Vs Schoeller Technologies India Pvt. Limited (ITAT Mumbai)

The assessee was making consistent losses for the last several years and therefore, the promoter company was supporting the assessee in continuing its survival. The sums payable to the promoter towards commission, knowhow fees and royalty are outstanding constantly for 2012-13 onwards. The accumulated losses of the company is ₹2.57 crores and therefore, the sum payable to the holding company remained unpaid. Part of the sum was received as loan and a sum of ₹

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