https://www.taxtmi.com/caselaws?id=464809 ITAT (Mum) upheld the CIT(A)'s finding and dismissed the AO's appeal, holding that s.41(1)(a) could not be invoked because the foundational requirement of remission or cessation of liability in respect of the trading liability was not satisfied for the year. The tribunal found the liability arose from purchase and sale of an inferior consignment and payment was withheld; there was no benefit by way of remission or cessation, so the amount could not be brought to tax under s.41(1)(a). The AO's challenge was therefore declined. en-us Fri, 17 Sep 2021 00:00:00 +0530 Sat, 15 Nov 2025 15:39:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464809 ITAT (Mum) upheld the CIT(A)'s finding and dismissed the AO's appeal, holding that s.41(1)(a) could not be invoked because the foundational requirement of remission or cessation of liability in respect of the trading liability was not satisfied for the year. The tribunal found the liability arose from purchase and sale of an inferior consignment and payment was withheld; there was no benefit by way of remission or cessation, so the amount could not be brought to tax under s.41(1)(a). The AO's challenge was therefore declined. Case-Laws Income Tax Fri, 17 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464809