Mere Lien over payment due to pending dispute does not result in cessation of trading liability u/s 41(1)

Brief about the case

The assessee is an individual and prop. of M/s R.S International which is engaged in manufacturing & trading of carpets. He filed his return of total income of Rs. 3,62,880/- on 30/09/2009. The AO completed the assessment vide order dated 30/12/2011 by rejecting the books under section 145(3) and made a total addition of Rs.4512594 composed of Rs. 3745366 being on account of suppressed production and Rs. 703498 being on account of low drawings for household expenses. Aggrieved

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