https://www.taxtmi.com/caselaws?id=178024 The tribunal allowed the appeal of the assessee, setting aside the addition made under section 41(1) of the Income-tax Act due to the cessation of liability and directed the AO to recompute the interest charge under section 234C. The tribunal found that the burden of proving the liability had ceased to exist was on the revenue, and since no evidence was presented to show the claim was forgotten, the addition made in the current year was not justified. The tribunal also considered the unilateral write-back of the liability by the assessee in a subsequent year, leading to the deletion of the addition. en-us Wed, 20 Apr 2011 00:00:00 +0530 Wed, 27 Jan 2016 11:42:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178024 The tribunal allowed the appeal of the assessee, setting aside the addition made under section 41(1) of the Income-tax Act due to the cessation of liability and directed the AO to recompute the interest charge under section 234C. The tribunal found that the burden of proving the liability had ceased to exist was on the revenue, and since no evidence was presented to show the claim was forgotten, the addition made in the current year was not justified. The tribunal also considered the unilateral write-back of the liability by the assessee in a subsequent year, leading to the deletion of the addition. Case-Laws Income Tax Wed, 20 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178024