https://www.taxtmi.com/caselaws?id=121474 The Tribunal dismissed the revenue's appeal, confirming the CIT(A)'s deletion of both additions. For the addition under Section 40A(3), the Tribunal agreed that the purchases were genuine and covered by exceptions in Rule 6DD, as payments were made in cash due to the nature of transactions with small vendors and producers. Regarding the addition under Section 41(1), the Tribunal found no evidence of cessation or remission of liabilities, as the AO failed to establish that the liabilities were trading liabilities allowed as deductions in previous years. The Tribunal also rejected the revenue's argument for considering an addition under Section 68. en-us Fri, 17 Apr 2009 00:00:00 +0530 Fri, 20 Oct 2023 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121474 The Tribunal dismissed the revenue's appeal, confirming the CIT(A)'s deletion of both additions. For the addition under Section 40A(3), the Tribunal agreed that the purchases were genuine and covered by exceptions in Rule 6DD, as payments were made in cash due to the nature of transactions with small vendors and producers. Regarding the addition under Section 41(1), the Tribunal found no evidence of cessation or remission of liabilities, as the AO failed to establish that the liabilities were trading liabilities allowed as deductions in previous years. The Tribunal also rejected the revenue's argument for considering an addition under Section 68. Case-Laws Income Tax Fri, 17 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121474