TaxTMI 
TaxTMI 
2015 (10) TMI 1479
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....t as on 31.3.2004 Rs. 40,000/- was outstanding as payable to Ahmedabad Stock Exchange. In reply to the show cause notice, the assessee submitted that the assessee-company was facing a huge financial crisis, as it had incurred huge loss for past several years, and therefore, the assessee was unable to pay the amount. It was also submitted that there was no cessation of liability and there was no remission granted to the assessee and the company intended to honour the liability. However, the AO held that there was cessation of liability and made addition of Rs. 40,000/- under section 41(1) of the Act. 4. On appeal, the CIT(A) observed that the amount was outstanding to Ahmedabad Stock Exchange from financial year 31-3-2001 till 31-3- 2009. T....
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....deduction in respect of liability in question, and if it was allowed then in which year. Further, it is observed that the Revenue has admitted that the amount in question was shown as liability by the assessee in its balance sheet of the year under consideration. We find that no material has been brought on record to show that the liability in question ceased to exist during the year under consideration or any benefit was derived by the assessee in respect of the liability in question during the year under consideration. The Hon'ble Gujarat High Court in the case of CIT Vs. Ravjibhai Becharbhai Dhameliya, (2013) 354 ITR 533 (Guj) has held that in the absence of material to show that there was a remission or cessation of liability as con....
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.... made in cash. In the case of the share applicants, not a single one was without a bank account. It was, therefore, surprising that despite maintaining bank account, each one of the share applicants chose to pay the application money by way of cash. Further, copies of bank account could not be furnished in spite of specific requests for doing so, and therefore, he was of the opinion that the identity and financial capacity of the applicants may not be in doubt, but the onus cast upon the assessee to establish the genuineness of the transaction has not been discharged. He, therefore, confirmed the addition of Rs. 10,20,000/-. 15. Before us, the AR of the assessee submitted that share application money of Rs. 10,20,000/- was received from te....