TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 416
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....9. These appeals are taken up together being the parties are the same and the matter of controversy can conveniently be adjudicated by a single order. 2. The assessee has raised the following grounds of appeal:- "1. For that on the facts and in the circumstances of the case the Ld. Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 1,83,848/- u/s. 41(1) of the Income Tax Act, 1961 towards amount payable to Rashtriya Ispat Nigam Ltd. Rs. 1,55,991/- and Prithvi Construction Co. Rs. 27,857/- on account of confirmation having not been produced and this action of the Ld Commissioner of Income Tax (Appeals) is arbitrary, unjustified, unwarranted and illegal. 2. For that on the facts and in the circumstances of the ca....
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.... the tune of Rs. 17,11,890/-. The Assessing Officer made an addition u/s.41(1) of the act as cessation of liability and the said action was confirmed by the CIT(A), therefore the assessee has filed the present appeal before us. So far as the appeal of the revenue is concerned, the revenue is dissatisfied to delete the disallowance of Rs. 38,30,671/-. Hence, the revenue is in appeal on this point before us. I.T.A. 3865/MUM/2012(Assessee's Appeal):- 5. Issue no.1 to 3 are interconnected therefore are being taken up together for adjudication. Under these issues the assessee has challenged the confirmation of addition of Rs. 1,83,848/- u/s.41(1) of the Act. The assessee was under obligation to pay an amount to the tune of Rs. 1,55,991/- to R....
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.... previous - (a) the first-mentioned person has obtained, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or some benefit in respect of such trading liability by way of remission or cessation thereof, the amount obtained by such person or the value of benefit accruing to him shall be deemed to be profits and gains of business or profession and accordingly chargeable to income-tax as the income of that previous year, whether the business or profession in respect of which the allowance or deduction has been made is in existence in that year or not; or (b) the successor in business has obtained, whether in cash or in any other manner whatsoever, any amount in respect of which loss or expe....
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....in a subsequent year, whether business or profession in respect of which the deduction or allowance has been made, is in existence in that year or not. v) There could be a remission or cessation of any trading liability by a unilateral act of the assessee by way of writing off such liability in his accounts [Explanation 1 to section 41(1) with effect from 01.04.1997) 5.2 Now coming to the case in hand, it is apparent that the case of the assessee is not within the ambit of remission or cessation liability exist upon the assessee which is not waived by the assessee as well as the creditors. In view of the said circumstances and relying upon law settled in Income Tax Officer Vs. Aasia Business Venture (P.) Ltd. [2014] 41 taxmann.com 84 (Mum....
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....allowed expenses of Rs. 17,94,574/-. Just as the AO, allowed expenses on account of interest & finance, depreciation, rate & taxes and audit fees totaling Rs. 17,94,594/-, the personnel expenses, administrative and general expenses (the AO by mistake has written "Advance & General Expenses" at Page 3 of his order) and depreciation are also incurred for the purpose of business of the company, hence these expenses are allowable. Grounds 4 & 5 are allowed. 6.1 On appraisal of the above mentioned finding, it is apparent that the Assessing Officer has allowed the expenditure to the tune of Rs. 17,94,594/- on account of interest, finance, depreciation, rate and taxes and audit fees whereas denied the administrative and general expenses and depre....