https://www.taxtmi.com/caselaws?id=238244 The Appellate Tribunal ITAT Delhi ruled in favor of the assessee in a dispute over the addition of an outstanding liability in the books for the assessment year 2007-08. The Tribunal found that the liability ceased in the financial year 2012-13, not in 2007, based on the application of Section 41(1) and Explanation (1). As the debtor wrote off the liability in their accounts in 2012, the Tribunal held that the liability ceased in 2013-14. Consequently, the addition made by the Assessing Officer was deleted, and the appeal of the assessee was allowed. en-us Fri, 11 Oct 2013 00:00:00 +0530 Fri, 18 Oct 2013 22:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=238244 The Appellate Tribunal ITAT Delhi ruled in favor of the assessee in a dispute over the addition of an outstanding liability in the books for the assessment year 2007-08. The Tribunal found that the liability ceased in the financial year 2012-13, not in 2007, based on the application of Section 41(1) and Explanation (1). As the debtor wrote off the liability in their accounts in 2012, the Tribunal held that the liability ceased in 2013-14. Consequently, the addition made by the Assessing Officer was deleted, and the appeal of the assessee was allowed. Case-Laws Income Tax Fri, 11 Oct 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=238244