Cessation of Liabilty u/s 41(1) of Income Tax Act cannot be treated as Income for Addition : ITAT sets aside Addition[Read Order]

Cessation of Liabilty - Income Tax Act - Income Tax - Income for Addition - ITAT sets aside Addition - taxscan

The Delhi bench of Income Tax Appellate Tribunal ( ITAT) held that cessation of liability under Section 41(1) of Income Tax Act,1961 cannot be treated as an income for addition. Raunika Fashion Pvt. Ltd, the appellant assessee  e-filed its return of income declaring total income at ‘Nil’ and claimed loss of an amount for the…

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