Section 41(1) of Income Tax Act doesn’t apply till liability is not written off in the books

ITO Vs Simu Sonthalia (ITAT Gauhati) ITAT Gauhati held that provisions of section 41(1) of the Income Tax Act cannot apply since the liability is still ‘payable’ to sundry creditor and had not been written off in the books of account and there is no evidence to indicate that said liabilities had ceased to exist. Facts- During the course of assessment proceedings AO called for details of purchases and the confirmation of sundry creditors. The assessee neither filed any detail of purchases nor any confirmation was filed. AO, thereafter, issued notice u/s. 133(6) of the Act to Shree Balaji Ud...