ITAT Delhi Deletes Capital Addition as No Liability Cessation Was Proved

ACIT Vs Rajiv Tyagi (ITAT Delhi) Core Issue: The Tribunal examined whether a capital increase of ₹7.57 crore, representing reclassification of outstanding loan balances from family members from “sundry creditors” to the proprietor’s capital account, and a further amount of ₹5.99 lakh relating to TDS and self-assessment tax, could be brought to tax under sections 68 or 41(1). Facts: The assessee, proprietor of M/s Rajiv Automobiles, had shown loans from four family members as sundry creditors in earlier years. On 01.04.2014, these balances were transferred to the personal capital ac...