https://www.taxtmi.com/caselaws?id=121522 The Tribunal allowed the appeal of the assessee, overturning the CIT(A)'s decision. It ruled that the outstanding liabilities could not be deemed as profits under section 41(1) of the Income-tax Act due to the lack of unilateral write-off and insufficient evidence of cessation. The Tribunal emphasized that mere passage of time does not constitute cessation and that the onus is on the Assessing Officer to prove the liabilities have ceased. The addition made by the AO was deemed unjustified, and the assessee's liabilities were upheld as valid. en-us Thu, 12 Mar 2009 00:00:00 +0530 Thu, 26 Oct 2023 10:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121522 The Tribunal allowed the appeal of the assessee, overturning the CIT(A)'s decision. It ruled that the outstanding liabilities could not be deemed as profits under section 41(1) of the Income-tax Act due to the lack of unilateral write-off and insufficient evidence of cessation. The Tribunal emphasized that mere passage of time does not constitute cessation and that the onus is on the Assessing Officer to prove the liabilities have ceased. The addition made by the AO was deemed unjustified, and the assessee's liabilities were upheld as valid. Case-Laws Income Tax Thu, 12 Mar 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121522