https://www.taxtmi.com/caselaws?id=420827 The Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objection. The addition of interest paid on overdraft to Work-in-Progress was correctly deleted, the alternative disallowance of interest on diverted funds was not sustained, and the addition under Section 41(1) for ceased liabilities was vacated. The Tribunal upheld the decisions of the CIT(A) based on Accounting Standard AS-2 and the principle that ceased liabilities can only be added in the year of benefit realization. en-us Wed, 06 Apr 2022 00:00:00 +0530 Sat, 09 Apr 2022 13:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=420827 The Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objection. The addition of interest paid on overdraft to Work-in-Progress was correctly deleted, the alternative disallowance of interest on diverted funds was not sustained, and the addition under Section 41(1) for ceased liabilities was vacated. The Tribunal upheld the decisions of the CIT(A) based on Accounting Standard AS-2 and the principle that ceased liabilities can only be added in the year of benefit realization. Case-Laws Income Tax Wed, 06 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=420827