2015 (8) TMI 1487

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.... For the Respondent: Shri Debasis Roy, JCIT-Sr-DR   ORDER Shri Mahavir Singh, JM: These two appeals by assessee are arising out of common order of CIT(A)- XXXII, Kolkata dated 01-10-2013. Assessments were framed by DCIT, Circle-50, Kolkata u/s147/143 r.w.s 254 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Years 2000-01 and 2001-02 vide his orders d....

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....ding as on 31.03.2000 (Rs) 1. B.K. Enterprises 35,658.20 2. Blue Star Engineering Co. 44,625.00 3. Bhowmick Engineering Co. 97,062.00 4. Chatterjee Engineering Co 71,423.00 5. Das Engineering 63,498.00 6. Eas Bee Enterprise 85,999.80 7. Gour Furniture 42,324.30 8. J.K.Tools 66,061.16 9. Kamala Engineering Works 66,933....

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....iabilities outstanding in the books of accounts of the assessee. Once the liabilities are outstanding whether in such cases, provision of Section 41(1) of the Act can be invoked. From the perusal of Sec. 41(1) of the Act, we are of the view that the requirement of obtain a benefit can be said to have satisfied if the cash is actually received or adjustment entry is made. The provision of Sec. 41(1....

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....to exists. In view of the above, we are of the view that in the present case, the liability very much in existence in on account of sundry credit and this is trading liability and once it is not seize to exist, or remitted, the mere non-existence of the parties cannot be added as an 'income' of the assessee. Accordingly, this appeal of assessee is allowed on merits. Similarly, issue in ITA No.2680....