https://www.taxtmi.com/caselaws?id=177309 The Tribunal held that the outstanding credit of the assessee could not be treated as income under section 41(1) of the Act as the liability did not cease to exist. The Tribunal emphasized that acknowledging a liability in the balance sheet constitutes acknowledgment under the Limitation Act, and the creditor could still seek recovery even after the limitation period. Therefore, the addition of the outstanding credit as income was deemed unsustainable. The Assessing Officer was directed to delete the addition, allowing the appeal of the assessee. en-us Fri, 22 May 2015 00:00:00 +0530 Thu, 07 Jan 2016 10:37:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177309 The Tribunal held that the outstanding credit of the assessee could not be treated as income under section 41(1) of the Act as the liability did not cease to exist. The Tribunal emphasized that acknowledging a liability in the balance sheet constitutes acknowledgment under the Limitation Act, and the creditor could still seek recovery even after the limitation period. Therefore, the addition of the outstanding credit as income was deemed unsustainable. The Assessing Officer was directed to delete the addition, allowing the appeal of the assessee. Case-Laws Income Tax Fri, 22 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177309