https://www.taxtmi.com/caselaws?id=460002 The ITAT Delhi ruled in favor of the assessee on two key issues. First, it directed the deletion of the addition made by the Assessing Officer concerning customer deposits, as neither section 41(1) nor section 41(2) of the Income Tax Act applied due to lack of evidence for cessation of liability. Second, the Tribunal upheld the CIT(A)'s decision to allow the write-off of inventory loss as a business expenditure, dismissing the revenue's appeal. The Tribunal's decision relied on precedent and reaffirmed the necessity of tangible evidence for liability cessation under section 41(1). en-us Thu, 14 Sep 2023 00:00:00 +0530 Tue, 07 Jan 2025 19:56:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460002 The ITAT Delhi ruled in favor of the assessee on two key issues. First, it directed the deletion of the addition made by the Assessing Officer concerning customer deposits, as neither section 41(1) nor section 41(2) of the Income Tax Act applied due to lack of evidence for cessation of liability. Second, the Tribunal upheld the CIT(A)'s decision to allow the write-off of inventory loss as a business expenditure, dismissing the revenue's appeal. The Tribunal's decision relied on precedent and reaffirmed the necessity of tangible evidence for liability cessation under section 41(1). Case-Laws Income Tax Thu, 14 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460002