Addition u/s 41(1) of Income Tax Act not Allowable in Absence of Evidence of Cessation of Liability: ITAT [Read Order]

It was found that the AO has not brought anything to show that it ceased to exist in the assessment year under consideration, in such circumstance, it is not possible to hold that debt ceased to exist.
ITAT - ITAT Delhi - Income Tax - section 41(1) of the Income Tax Act - Income Tax Act not Allowable - Tax news - Taxscan

The New Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) held that unless and until there is evidence to show that the liability has ceased to exist, there cannot be any addition under section  41(1) of the Income Tax Act, and hence, deleted the addition made by Assessing Officer ( AO )….

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