TaxTMI 
TaxTMI 
TaxTMI 
2019 (3) TMI 1973
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....C.A. ORDER PER DUVVURU RL REDDY, JUDICIAL MEMBER: These seven appeals filed by the Revenue pertaining to different assessees are directed against different orders of the ld. Commissioner of Income Tax (Appeals) 18, Chennai all dated 23.02.2018 relevant to the assessment year 2014-15. The only effective ground raised in all the appeals of the Revenue is that the ld. CIT(A) has erred in deleting the balance liability against the total addition made by the Assessing Officer towards outstanding land advance treated as income under section 41(1) of the Income Tax Act, 1961 ["Act" in short]. Since single common ground has been raised all the appeals against different assessees pertaining to one group, heard together and are being disposed of ....
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....ssessment year 2014-15, which was admitted by way of letter and affidavit before the Investigation Wing during the course of search proceedings. The assessee has not filed any reply to the show cause notice. However, the assessee filed its return of income for the assessment year 1014-15 on 18.03.2016, in which under Column No. 2 of Part A-P&L, the assessee had indicated an amount of Rs..1,66,90,000/- as "CESSATION OF LIABILITY". The Assessing Officer noticed that there is a difference of Rs..1,17,55,000/- as per the additional income admitted at the time of search and as declared by the assessee in his return of income. Moreover, in the Schedule Part "B- TI" of the Income tax return, the income was shown as Rs..1,66,90,000/- after accounti....
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....s on 31.03.2013 as income for the assessment year 2014-15 under section 41(1) of the Act [Cessation of liability]. Since the entire land advance of Rs..4,82,65,000/- was considered as additional income for the assessment year 2011-2012 on substantive basis, the assessment for assessment year 2014-2015 has been completed by determining the income at Rs..2,84,45,000/- for the assessment year 2014- 2015 on a protective basis by allowing the expenditure claimed by the assessee for Rs.. 34,935/- on account of audit fees, rates & taxes and bank charges. 5.1 On appeal, after considering the written submissions as well as arguments advanced by the AR of the assessee including the case law relied upon, by reproducing the provisions of section 41(1....
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....has been remission or cessation of liability during the year under consideration subject to the conditions contained in the statute being fulfilled. The aforesaid provisions of law are applicable in the cases where the liability stood remitted or ceased during the year under consideration. In the case under consideration, the liability to the creditors continues to be shown in the assessee's books of accounts and the accounts of the creditors have not been written back. Just because an assessee makes an entry in his books of accounts unilaterally, he cannot get rid of his liability. The question whether the liability is actually barred by limitation is not a matter which can be decided by considering the assessee's case alone but it....
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.... assessee's balance sheet, the impugned liabilities have been shown, which are payable to the sundry creditors. Such liabilities, shown in the balance sheet, indicate the acknowledgement of the debts payable by the assessee. Merely because such liability is outstanding for the last two to three years, it cannot be presumed that the said liabilities have ceased to exist. It is also conceded position that there is no bilateral act of the assessee and the creditors, which indicates that the said liabilities have ceased to exist. In absence of any bilateral act, the said liabilities could not have been treated to have ceased. The ld. Counsel for the assessee has relied on the following decisions of various High courts and he has also placed....