ITAT Remands Case for Verification of Liability under Section 41(1)

Sarjan Synthetics P. Ltd. Vs DCIT (ITAT Surat)

In the case of Sarjan Synthetics P. Ltd. Vs DCIT, the ITAT Surat remanded the matter to the Assessing Officer (AO) for further verification of an outstanding liability of ₹15.71 lakh, which was added under Section 41(1) of the Income Tax Act for AY 2015-16. The AO had made the addition based on the lack of evidence of payment and non-deduction of TDS. The assessee argued that the liability was discharged in the subsequent assessment year, supported by ledger accounts, and requested the matter to be sent back for verification. The CIT

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