2023 (9) TMI 1505

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....ort ld. 'CIT(A)'] dated 08.06.2023 arising out of the assessment order framed by the Assessing Officer (in short ld. 'AO') u/s 143(3)/254/251 of the Act. 2. The assessee is in appeal before this Tribunal raising the following grounds: "1. For that the assessment order passed by the Ld. AO as confirmed by the Ld. CIT(A) is bad in law as well as on facts. 2. For that the Ld. AO erred in assessing Loan Rs. 26,13,757/- payable to Lahar Commodities Pvt. Ltd. as the name of the said company was struck off on MCA in spite of the fact that there was no waiver of loan by the assessee and that the name was not struck off during the year under consideration. 3. For that even otherwise, the Ld. AO erred in assessing the Lo....

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....ow in appeal before this Tribunal. Ld. Counsel for the assessee submitted that the impugned addition deserves to be deleted because the alleged sum is in the nature of unsecured loan and not a trading liability. Ld. Counsel for the assessee was fair enough to state that in the outstanding amount appearing in the balance sheet in the name of M/s. Lahar Commodities Pvt. Ltd. only a sum of Rs. 2,05,725/- is the amount of interest which the assessee has claimed as an expenditure in its profit and loss account and the addition may be sustained only to the extent of the interest expenditure claimed by the assessee. 6. On the other hand, ld. D/R vehemently argued supporting the orders of both the lower authorities. 7. We have heard rival con....

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.... 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 expenditure was incurred by the first-mentioned person or some benefit in respect of the trading liability referred to in clause (a) by way of remission or ces....