https://www.taxtmi.com/caselaws?id=460747 ITAT Kolkata dismissed revenue's appeal regarding Section 41(1) additions for cessation of liability. The tribunal held that liability from land sale transaction to an individual could not attract Section 41(1) as profit was properly transferred to P&L account after completing legal formalities. Regarding liability from a private limited company, tribunal confirmed that mere unserved notices do not constitute cessation of liability without creditor's unilateral waiver or operation of law. For another liability, tribunal found no evidence of earlier deductions being reversed. The tribunal remanded compensation disallowance issue for fresh consideration with opportunity to adduce evidence, but confirmed addition of unexplained cash expenditure where assessee failed to substantiate source. en-us Fri, 24 Mar 2017 00:00:00 +0530 Fri, 14 Feb 2025 19:05:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460747 ITAT Kolkata dismissed revenue's appeal regarding Section 41(1) additions for cessation of liability. The tribunal held that liability from land sale transaction to an individual could not attract Section 41(1) as profit was properly transferred to P&L account after completing legal formalities. Regarding liability from a private limited company, tribunal confirmed that mere unserved notices do not constitute cessation of liability without creditor's unilateral waiver or operation of law. For another liability, tribunal found no evidence of earlier deductions being reversed. The tribunal remanded compensation disallowance issue for fresh consideration with opportunity to adduce evidence, but confirmed addition of unexplained cash expenditure where assessee failed to substantiate source. Case-Laws Income Tax Fri, 24 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460747