https://www.taxtmi.com/caselaws?id=790182 An addition for alleged cessation of liability under section 41(1) was unsustainable where the assessee had produced creditor-wise ledgers, PAN, addresses and other primary records, and the Revenue did not dispute their genuineness. Mere non-furnishing of creditor confirmations was insufficient to invoke section 41(1) without further verification of the outstanding balances and the assessee's explanation that the liabilities remained disputed. The appellate authority was also required to examine the material and record reasons before sustaining the addition, but did not do so. The addition was therefore directed to be deleted. en-us Mon, 06 Apr 2026 00:00:00 +0530 Tue, 21 Apr 2026 08:48:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790182 An addition for alleged cessation of liability under section 41(1) was unsustainable where the assessee had produced creditor-wise ledgers, PAN, addresses and other primary records, and the Revenue did not dispute their genuineness. Mere non-furnishing of creditor confirmations was insufficient to invoke section 41(1) without further verification of the outstanding balances and the assessee's explanation that the liabilities remained disputed. The appellate authority was also required to examine the material and record reasons before sustaining the addition, but did not do so. The addition was therefore directed to be deleted. Case-Laws Income Tax Mon, 06 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790182