ITAT Mumbai Deletes Section 41(1) Addition Where Liability Not Ceased

Devisha Infrastructure Pvt. Ltd. Vs ITO (ITAT Mumbai) Section 41(1) Can’t Be Invoked Merely Because Creditor Writes Off Liability; Capitalised Expenses Need Verification: ITAT Mumbai Grants Major Relief Mumbai ITAT granted substantial relief to the Assessee, a real-estate developer, by deleting a major addition u/s 41(1) and remanding the expenditure issue for limited verification. AY 2019-20 – Section 41(1) (₹10.23 Cr): The AO treated an outstanding balance of ₹10.23 crore payable to M/s Blue Circle Infratech as cessation of liability u/s 41(1), solely because the creditor had written...