https://www.taxtmi.com/caselaws?id=756013 The ITAT Delhi remanded the matter back to the AO for verification regarding additions under Section 41(1) for reduction of long term liabilities, short term borrowings, trade payables and other current liabilities. The CIT(A) had deleted the addition assuming no cessation of liabilities, but the assessee failed to provide confirmations about outstanding sundry creditors or details about intention to pay. The ITAT held that proper verification was required regarding existence of parties and whether liabilities were written off as bad debts, allowing the Revenue's appeal for statistical purposes. en-us Tue, 23 Jul 2024 00:00:00 +0530 Thu, 25 Jul 2024 08:05:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756013 The ITAT Delhi remanded the matter back to the AO for verification regarding additions under Section 41(1) for reduction of long term liabilities, short term borrowings, trade payables and other current liabilities. The CIT(A) had deleted the addition assuming no cessation of liabilities, but the assessee failed to provide confirmations about outstanding sundry creditors or details about intention to pay. The ITAT held that proper verification was required regarding existence of parties and whether liabilities were written off as bad debts, allowing the Revenue's appeal for statistical purposes. Case-Laws Income Tax Tue, 23 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756013