Retrospective cancellation of charitable registration under section 12AB(4) was unsustainable; related-party benefit allegations did not prove nongenu...
Merger control notice and disclosure rules: Supreme Court limits penalties, rejects reopening of approved combination, and sets aside adverse findings...
Section 41(1) did not apply where funds received from an AOP were credited to the assessee's personal bank account and later introduced into the business as capital. The ITAT noted that the Assessing Officer had treated the receipt as cessation of liability merely because it was not reflected in the proprietary concern's books, but the account confirmation, bank statement and debit balance with the AOP showed that the amount was received in the assessee's personal capacity. As the essential condition of cessation of liability was absent, the addition under Section 41(1) was unsustainable and was deleted.
Section 41(1) did not apply where funds received from an AOP were credited to the assessee's personal bank account and later introduced into the business as capital. The ITAT noted that the Assessing Officer had treated the receipt as cessation of liability merely because it was not reflected in the proprietary concern's books, but the account confirmation, bank statement and debit balance with the AOP showed that the amount was received in the assessee's personal capacity. As the essential condition of cessation of liability was absent, the addition under Section 41(1) was unsustainable and was deleted.
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