CIT v. Sugauli Sugar Works (P) Ltd.

236 ITR 518Supreme Court of India1999#447 most cited

What is CIT v. Sugauli Sugar Works (P) Ltd. authority for?

For the purpose of Section 41(1) of the Income-tax Act, a liability is considered to have ceased only when the creditor actively releases or writes off the amount, or when the liability ceases to exist in the assessee's books; mere expiry of the limitation period for recovery does not constitute cessation of liability.

203

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2002 to 2026.

Also referred to as

CIT v. Sugauli Sugar Works · 236 ITR 518 · Supreme Court · Section 41(1) · cessation of liability · remission of liability · deemed income · limitation period · creditor write-off · liability ceased to exist in books

Also reported as

102 Taxmann 713

Sections most often in play

Section 41(1)Section 143(3)Section 68Section 133(6)Section 142(1)Section 1961Section 37(1)Section 69C

Issues it is cited on

recognised provident fundapproved gratuity fundsection 50bsection 43b(f)section 40a(9)section 211section 41(1)wholly and exclusively for businesssection 35dsection 41slump salesection 32(1)(ii)

Judgments citing CIT v. Sugauli Sugar Works (P) Ltd.

HARSHAD HIMMATLAL RUPANI,PUNE vs. ITO WARD 5(2), PUNE

In the result the ground number 3 is allowed for Statistical

ITA 920/PUN/2025[2014-15]Status: DisposedITAT Pune28 Jan 2026AY 2014-15

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.920/Pun/2025 निर्धारण वषा / Assessment Year: 2014-15 Harshad Himmatlal Rupani, V The Income Tax Officer, 101/102, Ashoka Building, S Ward-5(1), Pune. Green Valley Housing Society, Wanwadi, Pune – 411040. Pan: Adopr6163Q Appellant/ Assessee Respondent / Revenue Assessee By Shri Mahavir Jain Revenue By Smt Neha Thakur – (Virtual) Date Of Hearing 21/01/2026 Date Of Pronouncement 28/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For A.Y.2014-15 Dated 26.08.2024 Emanating From The Assessment Order Passed Under Section 143(3) Of The Income Tax Act, 1961, Dated 22.11.2016. The Assessee Has Raised The Following Grounds Of Appeal :

Section 143(3)Section 250Section 41(1)

…igh Court in the case of Jain Exports (P.) Ltd. (supra) has relied upon the decisions of the Supreme Court in the case of Bombay Dyeing and Manufacturing Co. Ltd. v. State of Bombay AIR 1958 SC328 and CIT v. Sugauli Sugar Works (P.) Ltd. [1999] 102 Taxman 713/236 ITR 518. In Sugauli Sugar Works(P.) Ltd. (supra), the Supreme Court has referred to the decision of the Division Bench of this Court in the case of Kohinoor Mills Co. Ltd. v. CIT [1963] 49 ITR 578. The Delhi High Court, after following these decisions concluded that merely because the liability is barred by limitation, it does not cease to be a debt. Thi…

AKSHAY GUJRAL ,DELHI vs. DCIT CENTRAL CIRCLE-29 , DELHI

ITA 7617/DEL/2025[2016-17]Status: DisposedITAT Delhi29 Dec 2025AY 2016-17

Bench: Shri Satbeer Singh Godaraassessment Year: 2016-17

Section 153CSection 41(1)

…a 3 at page 7 of the assessment order has nowhere made it clear that the amount in issue had ceased to exist as a liability as per the assessee’s books of account in the relevant previous year held as mandatory in CIT v. Sugauli Sugar Works (P) Ltd. (1999) 236 ITR 518 (SC). I accordingly hold that impugned section 41(1) cessation of liability as not sustainable in law. 4. This assessee’s appeal ITA No. 7617/Del/2025 is allowed. Order pronounced in open court on 24.12.2025. (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 29.12.2025. *MP*…

JCIT(OSD), DELHI vs. AVON METERS PRIVATE LIMITED, PUNJAB

In the result, the appeal filed by the Department is dismissed

ITA 328/DEL/2025[2017-18]Status: DisposedITAT Delhi26 Nov 2025AY 2017-18

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

For Appellant: Shri K. Sampath, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 142(1)Section 143(2)Section 40A(7)Section 68

…ng repaid to the respective parties. We observe that it is on that reasoning that the ld. CIT (A) deleted the addition. We observe that the action of ld. CIT (A) in so doing is supported by the decisions of apex Court in the CIT vs. Sugauli Sugar Mills (1989) 236 ITR 518(SC), CIT vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 and Polyflex India (P) Ltd. vs. CIT (2002) 257 ITR 343 (SC). Further we observe that the common Ground in all the cited cases has been that limitation by itself cannot bring the amount under the purview of Sec. 41(1) of the Act, the amount in question has to be released or admission of write of…

AVON METERS PVT LTD,MOHALI vs. DCIT CIRCLE-1(1), DELHI

In the result, the appeal filed by the Department is dismissed

ITA 5794/DEL/2024[2017-18]Status: DisposedITAT Delhi26 Nov 2025AY 2017-18

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

For Appellant: Shri K. Sampath, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 142(1)Section 143(2)Section 40A(7)Section 68

…ng repaid to the respective parties. We observe that it is on that reasoning that the ld. CIT (A) deleted the addition. We observe that the action of ld. CIT (A) in so doing is supported by the decisions of apex Court in the CIT vs. Sugauli Sugar Mills (1989) 236 ITR 518(SC), CIT vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 and Polyflex India (P) Ltd. vs. CIT (2002) 257 ITR 343 (SC). Further we observe that the common Ground in all the cited cases has been that limitation by itself cannot bring the amount under the purview of Sec. 41(1) of the Act, the amount in question has to be released or admission of write of…

ALICON CASTALLOY LTD,PUNE vs. PCIT,-1, PUNE, PUNE

In the result, appeal of the Assessee is allowed

ITA 1377/PUN/2025[2020-21]Status: DisposedITAT Pune14 Nov 2025AY 2020-21

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपऩल सं. / Ita No.1377/Pun/2025 निर्धारण वषा / Assessment Year: 2020-21 Alicon Castalloy Ltd., V The Pr.Commissioner Of Gat No.1426, Village S Income Tax-1, Pune. Shikrapur, Taluka Shirur, Pune – 412208. Pan: Aabcp0252B Appellant/ Assessee Respondent / Revenue Assessee By Shri Nikhil S Pathak Revenue By Shri Aditya Shukla – Cit(Dr) Date Of Hearing 17/09/2025 Date Of Pronouncement 14/11/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Principal Commissioner Of Income Tax, Pune-1, Under Section 263 Of The Income Tax Act, 1961 Dated 27.03.2025 For Assessment Year 2020-21 Emanating From The Assessment Order U/S.143(3) Of The Act, Dated 20.09.2022. The Assessee Has Raised The Following Grounds Of Appeal : “1] The Learned Pr.C1T Erred In Revising The Asst, Order Passed U/S

Section 143(3)Section 263

…rived by the Assessee from cessation of liability. It has not been brought on record by Pr.CIT that Assessee has received benefit in respect of the impugned trading liabilities. 8. The Hon’ble Supreme Court in the case of CIT Vs. Sugauli Sugar Works (P.) Ltd.236 ITR 518(SC) vide order dated 04.02.1999 has explained that “a unilateral act on the part of the debtor cannot bring about a cessation of his liability”. Therefore, the presumption, 6 ITA No.1377/PUN/2025 [A] assumption on the part of Pr.CIT that liability may have ceased is not based on facts and the law applicable. 9. Be it as it may be, we have alrea…

DY.COMMISSIONER OF INCOME TAX,CC-2,, KANPUR vs. SHRI.MOHAMMAD ASFAND AKHTAR, KANPUR

In the result, the appeal of Revenue in ITA

ITA 144/LKW/2022[2018-19]Status: DisposedITAT Lucknow26 Sept 2025AY 2018-19

Bench: Shri Sudhanshu Srivastava & Shri Anadee Nath Misshraassessment Year: 2018-19 Dcit, Cc-2 V. Shri Mohammad Asfand Laxmi Niwas, 10/503, Akhtar Allenganj, Kanpur-208001. Plot No.02, Block-B, Scheme-39, Ram Rai Ki Sarai, Jajmau, Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Assessment Year: 2018-19 Shri Mohammad Asfand Akhtar V. Dcit, Central Circle-Ii Plot No.02, Block-B, Scheme-39, 10/503, Allenganj, Kanpur- Ram Rai Ki Sarai, Jajmau, 208001. Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Appellant By: Shri Ashish Jaiswal, Advocate Respondent By: Shri R. K. Agarwal, Cit(Dr) O R D E R

For Appellant: Shri Ashish Jaiswal, AdvocateFor Respondent: Shri R. K. Agarwal, CIT(DR)
Section 143(3)Section 36(1)(va)Section 37Section 41Section 41(1)Section 68Section 69C

…ee had made payments to creditors through cheques, merely because some creditors had not confirmed receipts. He also placed reliance on PCIT vs Adani Agro (P) Ltd 92020) 273 Taxman 430 (Guj- HC) dated 10.02.2020 and CIT vs Saugauli Sugal Works (P) Ltd. (1999) 236 ITR 518 (SC) dated 04.02.1999, for the proposition that merely because liability had remained outstanding for more than three years and same was not written back in profit and loss account, application of provisions of section 41(1) could not have been made to consider such liability as income for year under consideration without there actually being any…

MOHD. ASFAND AKHTAR,KANPUR vs. DEPUTI COMMISSIONER OF INCOME TAX CC-2, KANPUR

In the result, the appeal of Revenue in ITA

ITA 139/LKW/2022[2018-19]Status: DisposedITAT Lucknow26 Sept 2025AY 2018-19

Bench: Shri Sudhanshu Srivastava & Shri Anadee Nath Misshraassessment Year: 2018-19 Dcit, Cc-2 V. Shri Mohammad Asfand Laxmi Niwas, 10/503, Akhtar Allenganj, Kanpur-208001. Plot No.02, Block-B, Scheme-39, Ram Rai Ki Sarai, Jajmau, Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Assessment Year: 2018-19 Shri Mohammad Asfand Akhtar V. Dcit, Central Circle-Ii Plot No.02, Block-B, Scheme-39, 10/503, Allenganj, Kanpur- Ram Rai Ki Sarai, Jajmau, 208001. Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Appellant By: Shri Ashish Jaiswal, Advocate Respondent By: Shri R. K. Agarwal, Cit(Dr) O R D E R

For Appellant: Shri Ashish Jaiswal, AdvocateFor Respondent: Shri R. K. Agarwal, CIT(DR)
Section 143(3)Section 36(1)(va)Section 37Section 41Section 41(1)Section 68Section 69C

…ee had made payments to creditors through cheques, merely because some creditors had not confirmed receipts. He also placed reliance on PCIT vs Adani Agro (P) Ltd 92020) 273 Taxman 430 (Guj- HC) dated 10.02.2020 and CIT vs Saugauli Sugal Works (P) Ltd. (1999) 236 ITR 518 (SC) dated 04.02.1999, for the proposition that merely because liability had remained outstanding for more than three years and same was not written back in profit and loss account, application of provisions of section 41(1) could not have been made to consider such liability as income for year under consideration without there actually being any…

DY COMMISSIONER OF INCOME TAX CIRCLE 7 PUNE, PUNE vs. KUMAR HOUSING CORPORATION PRIVATE LIMITED, PUNE

In the result, both the appeals filed by the assessee are allowed and the appeal filed by the Revenue is dismissed

ITA 341/PUN/2025[2013-14]Status: DisposedITAT Pune18 Aug 2025AY 2013-14

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2013-14

For Appellant: Shri Nikhil S PathakFor Respondent: Shri Ramnath P Murkunde
Section 143(2)Section 32Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER Assessment Year : 2013-14 Kumar Urban Development Pvt. Ltd. DCIT, Circle – 14, (Successor to Kumar Housing Pune Corporation Pvt. Ltd.) Vs. 2409, East Street Camp, Pune - 411001 PAN: AAACK7659N (Appellant) (Respondent) Assessment Year : 2013-14 DCIT, Circle – 14, Kumar Urban Development Pvt. Ltd. Pune (Successor to Kumar Housing Vs. Corporation Pvt. Ltd.) 2409, East Street Camp, Pune - 411001 PAN: AAACK7659N (Appellant) (Respondent) Assessment Year : 2014-15 Kumar Urban D…

KUMAR URBAN DEVELOPMENT PVT. LTD (SUCCESSOR KUMAR HOUSING CORPN. PVT LTD),PUNE vs. DCIT CIRCLE 14, PUNE

In the result, both the appeals filed by the assessee are allowed and the appeal filed by the Revenue is dismissed

ITA 2875/PUN/2024[2013-14]Status: DisposedITAT Pune18 Aug 2025AY 2013-14

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2013-14

For Appellant: Shri Nikhil S PathakFor Respondent: Shri Ramnath P Murkunde
Section 143(2)Section 32Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER Assessment Year : 2013-14 Kumar Urban Development Pvt. Ltd. DCIT, Circle – 14, (Successor to Kumar Housing Pune Corporation Pvt. Ltd.) Vs. 2409, East Street Camp, Pune - 411001 PAN: AAACK7659N (Appellant) (Respondent) Assessment Year : 2013-14 DCIT, Circle – 14, Kumar Urban Development Pvt. Ltd. Pune (Successor to Kumar Housing Vs. Corporation Pvt. Ltd.) 2409, East Street Camp, Pune - 411001 PAN: AAACK7659N (Appellant) (Respondent) Assessment Year : 2014-15 Kumar Urban D…

KUMAR URBAN DEVELOPMENT PVT. LTD (SUCCESSOR KUMAR HOUSING CORPORATION PVT LTD),PUNE vs. DCIT CIRCLE 14, PUNE

In the result, both the appeals filed by the assessee are allowed and the

ITA 2874/PUN/2024[2014-15]Status: DisposedITAT Pune18 Aug 2025AY 2014-15

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Nikhil S PathakFor Respondent: Shri Ramnath P Murkunde
Section 143(2)Section 32Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.2875/PUN/2024 Assessment Year : 2013-14 Kumar Urban Development Pvt. Ltd. (Successor to Kumar Housing Corporation Pvt. Ltd.) 2409, East Street Camp, Pune 411001 PAN: AAACK7659N (Appellant) Vs. DCIT, Circle – 14, Pune (Respondent) ITA No.341/PUN/2025 Assessment Year : 2013-14 DCIT, Circle – 14, Pune Vs. Kumar Urban Development Pvt. Ltd. (Successor to Kumar Housing Corporation Pvt. Ltd.) 2409, East Street Camp, Pune - 411001 PAN: AAACK7659N (Appellant) (Respondent) ITA No…

DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE-1(1), NEW DELHI, DELHI vs. AADHARSHILLA CONTRACTORS PVT LTD, DELHI

In the result, the grounds raised by the Revenue are dismissed

ITA 4208/DEL/2024[2018-19]Status: DisposedITAT Delhi06 Aug 2025AY 2018-19

Bench: Shri Challa Nagendra Prasad & Shri S. Rifaur Rahmanaadharshilla Contractors Private Limited, Vs. Dcit, Circle 1 (1), 2Nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (Pan : Aaeca3452D) Dcit, Circle 1 (1), Vs. Aadharshilla Contractors Private Limited, 2Nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (Pan : Aaeca3452D) (Appellant) (Respondent) Assessee By : Shri Rajat Jain, Ca Shri Akshat Jain, Ca Revenue By : Shri Ajay Kumar Arora, Sr. Dr Date Of Hearing : 28.05.2025 Date Of Order : 06.08.2025 O R D E R

For Appellant: Shri Rajat Jain, CAFor Respondent: Shri Ajay Kumar Arora, Sr. DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Aadharshilla Contractors Private Limited, vs. DCIT, Circle 1 (1), 2nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (PAN : AAECA3452D) DCIT, Circle 1 (1), vs. Aadharshilla Contractors Private Limited, 2nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (PAN : AAECA3452D) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Rajat Jain, CA Shri Akshat Jain, CA REVENUE BY : Shri Ajay Kumar Arora, Sr. DR Date of Heari…

AADHARSHILLA CONTRACTORS PRIVATE LIMITED,SHAHDARA, DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), DELHI

In the result, the grounds raised by the Revenue are dismissed

ITA 4137/DEL/2024[2017-18]Status: DisposedITAT Delhi06 Aug 2025AY 2017-18

Bench: Shri Challa Nagendra Prasad & Shri S. Rifaur Rahmanaadharshilla Contractors Private Limited, Vs. Dcit, Circle 1 (1), 2Nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (Pan : Aaeca3452D) Dcit, Circle 1 (1), Vs. Aadharshilla Contractors Private Limited, 2Nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (Pan : Aaeca3452D) (Appellant) (Respondent) Assessee By : Shri Rajat Jain, Ca Shri Akshat Jain, Ca Revenue By : Shri Ajay Kumar Arora, Sr. Dr Date Of Hearing : 28.05.2025 Date Of Order : 06.08.2025 O R D E R

For Appellant: Shri Rajat Jain, CAFor Respondent: Shri Ajay Kumar Arora, Sr. DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Aadharshilla Contractors Private Limited, vs. DCIT, Circle 1 (1), 2nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (PAN : AAECA3452D) DCIT, Circle 1 (1), vs. Aadharshilla Contractors Private Limited, 2nd Floor, Shahdara Metro Station, Delhi. Parsvnath Tower, Delhi – 110 032. (PAN : AAECA3452D) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Rajat Jain, CA Shri Akshat Jain, CA REVENUE BY : Shri Ajay Kumar Arora, Sr. DR Date of Heari…

M/S CHHANABHAI KANJIBHAI PATEL,SURAT vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2(2)), SURAT

In the result, appeal of the assessee is treated as allowed

ITA 757/SRT/2024[2017-18]Status: DisposedITAT Surat18 Jul 2025AY 2017-18

Bench: MS SUCHITRA RAGHUNATH KAMBLE (Judicial Member), SHRI BIJAYANANDA PRUSETH (Accountant Member)

Section 133(6)Section 143(3)Section 250Section 251(1)(a)Section 41(1)Section 68

…IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE MS SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.757/SRT/2024 Assessment Year: (2017-18) (Hybrid Hearing) M/s Chhanabhai Kanjibhai Assistant Commissioner of Income- बनाम/ Patel tax, Circle-2(2), Surat, Room Vs. Block No.135, Vallabh Vidhya No.622,6th Floor, Aaykar Bhavan, Nagar Society, Kamrej, Surat- Near Majura Gate, Opp. Civil 394 185 Hospital, Surat -395 001 स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AASFM 1594 M (Appellant) (Respondent) िनधा"रती की ओर से /Appellant by Shri Sapnesh R Sheth,…

INDEX LOGISTICS PRIVATE LIMITED,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(2),, MUMBAI

In the result the appeal filed by the assessee stands partly\nallowed

ITA 4641/MUM/2023[2021-22]Status: DisposedITAT Mumbai09 Jul 2025AY 2021-22
Section 132Section 132(3)Section 143(3)Section 41(1)Section 68

…that,\n\"Whether since there was no remission or cessation of liability in\nquestion during current assessment year, addition made by\nAssessing Officer was to be deleted.\" Also, in the case of Sugauli\nSugar Works Pvt Ltd reported in [[1999] 102 Тахтап\n713/236 ITR 518 (SC)), Hon'ble Apex Court held that, "Expiry of\nperiod of limitation cannot extinguish the debt Section 41(1) not\napplicable." Further in the case of Puridevi Mahendrakumar\nChaudhary reported in [[2014] 41 taxmann.com 329/221\nTaxman 375 (Guj) Hon'ble Gujarat High Court held that,\n\"Where assessee had outstanding creditors for goods and\nAsse…

DCIT, ACIT10OSD, NEW DELHI, C R BUILDING vs. GANPATI BUILATECH PVT. LTD., CIVIL LINES

In the result, appeal of the appellant is allowed

ITA 2834/DEL/2023[2014-15]Status: DisposedITAT Delhi01 Jul 2025AY 2014-15

Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)

Section 143(3)Section 41(1)

…for around three years, there was no possibility of any claim being made by the creditors and the amount of liabilities outstanding were liable to be added as income of the assessee. The Supreme Court in the case of CIT v. Sugaull Sugar Works (P.) Ltd. [1999] 236 ITR 518/102 Taxman 713 held that section 41(1) contemplates obtaining by the assessee an amount either in cash or any other manner or any benefit by way of cessation or remission of liability. In order to come within the sweep of section 41(1) it is necessary that the benefit derived by an assessee result from cessation or remission of a trading liabilit…

AMIT KUMAR SEN,HOOGHLY vs. ACIT, CIRCLE 23(1), , HOOGHLY

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 388/KOL/2025[2017-18]Status: DisposedITAT Kolkata25 Jun 2025AY 2017-18

Bench: Shri George Mathan & Shri Sanjay Awasthiआयकर अपील सं/Ita No.388/Kol/2025 (निर्धारण वर्ा / Assessment Year : 2017-2018) Amit Kumar Sen, Vs Acit, Circle-23(1), Hooghly Sahapur, Tarakeswar, Hooghly (Wb)-712410 Pan No. :Aavfs 6967 R (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee By : Shri P.K.Ray, Shri S.N.Patra & Shri Trideep Nayak, Ars रधजस्व की ओर से /Revenue By : Shri Abhijit Adhikary, Addl/Cit-Sr.Dr सुनवाई की तारीख / Date Of Hearing : 25/06/2025 घोषणा की तारीख/Date Of Pronouncement : 25/06/2025 आदेश / O R D E R Per George Mathan, Jm : This Is An Appeal Filed By The Assessee Against The Order Dated 27.12.2024 Of The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Passed In Din & Order No.Itba/Nfac/S/250/2024- 25/1071619653(1) For The Assessment Year 2017-2018. 2. Shri P.K.Ray, Shri S.N.Patra & Shri Trideep Nayak, Ld. Ars Appeared On Behalf Of The Assessee. Shri Abhijit Adhikary, Ld. Sr.Dr Appeared On Behalf Of The Revenue. 3. At The Time Of Hearing, Ld. Ar Was Specifically Asked To Point Out How The Assessee Has Responded To The Chart Issued By The Assessing Officer, Which Is Recorded In Page 3 Of The Assessment Order. Other Than Referring To Various Replies That Have Been Filed By The Assessee, Which Were Uploaded From The Portal, No Specific Reply To The Said Para Was Pointed Out. Admittedly, The Assessee Has Not Been Able To Dislodge The Said Chart.

For Appellant: Shri P.K.Ray, Shri S.N.Patra and Shri Trideep Nayak, ArsFor Respondent: Shri Abhijit Adhikary, Addl/CIT-Sr.DR
Section 142(1)Section 143(2)

…e of such evidence renders the assessment invalid. In this case, the Ld. Assessing Officer presumed unaccounted sales without proving the actual sale or purchase of excess stock, making the addition unsustainable. 2. CIT v. Sugauli Sugar Works (P) Ltd. (1999) 236 ITR 518 (SC): • Additions cannot be made based on mere suspicion, conjecture, or guesswork. The Ld. Assessing Officer in the current case assumed undisclosed sales based on a stock discrepancy without any concrete evidence. The Supreme Court ruled that such arbitrary additions are impermissible unless supported by tangible evidence. 3. CIT v. Daulat Ram…

DYNAMIC TRANSMISSION LTD.,ROHTAK vs. ACIT, CIRCLE , ROHTAK

In the result, the appeal filed by the Department is dismissed

ITA 328/DEL/2019[2014-15]Status: DisposedITAT Delhi25 Mar 2025AY 2014-15

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)

For Appellant: Shri K. Sampath, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 142(1)Section 143(2)Section 40A(7)Section 68

…ng repaid to the respective parties. We observe that it is on that reasoning that the ld. CIT (A) deleted the addition. We observe that the action of ld. CIT (A) in so doing is supported by the decisions of apex Court in the CIT vs. Sugauli Sugar Mills (1989) 236 ITR 518(SC), CIT vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 and Polyflex India (P) Ltd. vs. CIT (2002) 257 ITR 343 (SC). Further we observe that the common Ground in all the cited cases has been that limitation by itself cannot bring the amount under the purview of Sec. 41(1) of the Act, the amount in question has to be released or admission of write of…

DCIT, CENTRAL CIRCLE, ALIGARH vs. JAI BANKEY BIHARI PERFUMERS PVT. LTD., HATHRAS

ITA 41/AGR/2023[2018-19]Status: DisposedITAT Agra13 Feb 2025AY 2018-19

Bench: : Shri Satbeer Singh Godara & Shri Manoj Kumar Aggarwal

Section 115BSection 143(3)Section 153ASection 153A(1)Section 41Section 41(1)Section 68

…issue pressed in the Revenue’s instant appeal is sec. 41(i) cessation of liability addition of Rs.2,68,00,000/- wherein no actual cessation has been formed in assessee’s books hardly carries any merit in light of CIT v/s Sugauli Sugar Works (P) Ltd. (1999)236 ITR 518(SC). This latter substantive ground is rejected therefore. This Revenue’s appeal ITA No. 41/Agr/2023 is partly accepted. 7. Learned counsel does not press for the assessee’s C.O. No. 01/Agr/2023 as we have already decided section 115BBE issue hereinabove. Dismissed as not pressed. 8. To sum up, the Revenue’s twin appeals ITA No. 40 & 41/Agr…

DCIT, CENTRAL CIRCLE, ALIGARH vs. JAI BANKEY BIHARI PERFUMERS PVT. LTD, HATHRAS

ITA 40/AGR/2023[2016-17]Status: DisposedITAT Agra13 Feb 2025AY 2016-17

Bench: : Shri Satbeer Singh Godara & Shri Manoj Kumar Aggarwal

Section 115BSection 143(3)Section 153ASection 153A(1)Section 41Section 41(1)Section 68

…issue pressed in the Revenue’s instant appeal is sec. 41(i) cessation of liability addition of Rs.2,68,00,000/- wherein no actual cessation has been formed in assessee’s books hardly carries any merit in light of CIT v/s Sugauli Sugar Works (P) Ltd. (1999)236 ITR 518(SC). This latter substantive ground is rejected therefore. This Revenue’s appeal ITA No. 41/Agr/2023 is partly accepted. 7. Learned counsel does not press for the assessee’s C.O. No. 01/Agr/2023 as we have already decided section 115BBE issue hereinabove. Dismissed as not pressed. 8. To sum up, the Revenue’s twin appeals ITA No. 40 & 41/Agr…

SHRI RAJESH RAMCHANDRA DAKE,PANVEL vs. DY CIT CC-1, MUMBAI

ITA 3/MUM/2021[2008-09]Status: DisposedITAT Mumbai23 Jan 2025AY 2008-09
For Appellant: \nShri Rajesh Ramchandra DakeFor Respondent: \nDy. Commissioner of Income Tax
Section 10Section 132Section 139(1)Section 143(1)Section 143(3)Section 153ASection 250

…ation. Therefore, the provision of Section 41(1) of the Act, is at all not applicable in the absence of any remission or cessation of liability. The Assessee in this regard also relied on various judgments including CIT vs. Sugauli Sugar Works (P) Ltd. (1999) 236 ITR 518 (SC).\n\n14.5 On the contrary the Ld. D.R. refuted the claim of the Assessee. The Ld. D.R. vehemently submitted that the Assessee not only failed to bring on record the relevant documents qua advance received under consideration, however, also failed to justify receiving the advance, as has not placed on record any relevant material qua the prope…

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