https://www.taxtmi.com/caselaws?id=771849 ITAT Ahmedabad ruled in favor of the assessee regarding cessation of liability under section 41(1). The Revenue treated liabilities as ceased solely because creditors' PAN numbers were not furnished. The tribunal held that non-furnishing of PAN cannot establish that liabilities ceased to exist. The assessee had provided creditor confirmations which were neither found false nor questioned. The tribunal concluded that lack of PAN only indicates parties may not be registered assessees with the department, not that entities don't exist. The Revenue failed to prove liabilities actually ceased. Appeal allowed. en-us Fri, 09 May 2025 00:00:00 +0530 Sat, 31 May 2025 08:47:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771849 ITAT Ahmedabad ruled in favor of the assessee regarding cessation of liability under section 41(1). The Revenue treated liabilities as ceased solely because creditors' PAN numbers were not furnished. The tribunal held that non-furnishing of PAN cannot establish that liabilities ceased to exist. The assessee had provided creditor confirmations which were neither found false nor questioned. The tribunal concluded that lack of PAN only indicates parties may not be registered assessees with the department, not that entities don't exist. The Revenue failed to prove liabilities actually ceased. Appeal allowed. Case-Laws Income Tax Fri, 09 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771849