What is DSA Engineers v. ITO authority for?

Limitation of time is not a determining factor in matters relating to remission or cessation of trading liabilities under Section 41(1). Addition under Section 41(1) cannot be made without evidence of remission or cessation of liability, or a unilateral write-back by the assessee.

How many judgments cite DSA Engineers v. ITO?

11 judgments on BharatTax cite DSA Engineers v. ITO (30 SOT 31), spanning 2016 to 2025.

Which sections of the Income Tax Act does DSA Engineers v. ITO come up under?

It is most often cited in judgments turning on Section 133(6), Section 133A, Section 142(1), Section 143(3), Section 41(1), Section 68.

DSA Engineers v. ITO (30 SOT 31)

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

…explanation 1 of section 41 has no applicability as held by Hon'ble Delhi High Court in the case of Commissioner of Income Tax vs. Auto Kashyap India Private Limited- ITA 418/2010 dated 12.04.2010. 163. The assessee rely also on the case law reported in [2009 30 SOT 31 (MUM.) IN THE ITAT MUMBAI BENCH'D' DSA Engineers (Bombay) v. Income-Tax Officer, Ward I9(l)-3, Mumbai IT APPEAL N0.5354 (MUM.) OF 2007 [ASSESSMENT YEAR 2003-04] MARCH 12, 2009 in which following has been observed: Section 41(1) of the Income-tax Act, 19(51 - Remission or cessation of trading liability- Assessment year 2003-04 - Whether limitation o…

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

…explanation 1 of section 41 has no applicability as held by Hon'ble Delhi High Court in the case of Commissioner of Income Tax vs. Auto Kashyap India Private Limited- ITA 418/2010 dated 12.04.2010. 163. The assessee rely also on the case law reported in [2009 30 SOT 31 (MUM.) IN THE ITAT MUMBAI BENCH'D' DSA Engineers (Bombay) v. Income-Tax Officer, Ward I9(l)-3, Mumbai IT APPEAL N0.5354 (MUM.) OF 2007 [ASSESSMENT YEAR 2003-04] MARCH 12, 2009 in which following has been observed: Section 41(1) of the Income-tax Act, 19(51 - Remission or cessation of trading liability- Assessment year 2003-04 - Whether limitation o…

Income Tax Officer, Dhar vs. Shri Sunil Kumar Jain Prop. M/S Sunil Traders, Kanwan, Badnagar

In the result, Revenue’s appeal is dismissed

ITA 793/IND/2018[2014-15]Status: DisposedITAT Indore21 Nov 2022AY 2014-15

Bench: Ms. Madhumita Roy & Shri Bhagirath Mal Biyani

For Appellant: Shri Ashish Porwal, Sr.DRFor Respondent: Date of Hearing

Section 142(1)Section 143(3)Section 41(1)

…y) for a period longer than 3 years can not be taken as deemed income under section 41(1) if there is no indication that the said liability ceased to exist. In this connection attention is drawn to the following cases . i DSA Engineers( Bombay) v. ITO [2009] 30 SOT 31 (Mum), ii CIT v Puridevi MahendrakumarChaudhary[2014] 221 Taxman 375 (Guj). ". ; . 7. It is humbly submitted that that there are two requirements for invoking the provisions of Section 41. The'sine qua non is, the remission or cessation of the trading liability and the additional requirement -is some benefit in respect of such trade liability is ta…

ACIT, Circle-3, Ranchi vs. Shri Sumit Ramsisaria, Ranchi

ITA 222/RAN/2019[2015-16]Status: DisposedITAT Ranchi11 Dec 2020AY 2015-16

Bench: Shri J.Sudhakar Reddy & Shri S.S.Godara

Section 133(6)Section 143(3)Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH “E” COURT AT KOLKATA Before Shri J.Sudhakar Reddy, Accountant Member and Shri S.S.Godara, Judicial Member ITA No.222/Ran/2019 & Cross Objection No.12/Ran/2019 (a/o ITA No.222/Ran/2019) Assessment Year : 2014-15 Asstt. Commissioner of Shri Sumit Ramsisaria बनाम Income-tax,Circle-3, Kantatoli Chowk, Purulia Room No. 302, 3rd Floor, Road, Ranchii-834001 V/s. Central Revenue Building [PAN No.AGSPR 9853 J] (Annexe), Main Road, Ranchi-834001 .. अपीलाथ" /Appellant ""यथ"/Respondent/ "तया"ेपक / co-objector Shri R.K. Garodia, FCA आवेदक क" ओर से/By Assessee Shri Inderjit…

Purna Chandra Biswal, Jajpur vs. Principal CIT, Cuttack

In the result, appeal of the assessee is partly allowed

ITA 200/CTK/2018[2013-14]Status: DisposedITAT Cuttack15 Nov 2019AY 2013-14

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.200/Ctk/2018 (नििाारण वषा / Assessment Year :2013-2014) Sri Purna Chandra Biswal, Vs. Principal Cit, Cuttack Jakhapura, Jajpur-755019 स्थायी लेखा सं./Panno. : Aclpb 1493 P (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee By : Shri S.K.Sarangi, Ar िाजस्व की ओर से /Revenue By : Shri S.M.Keshkamat, Citdr

For Appellant: Shri S.K.Sarangi, ARFor Respondent: Shri S.M.Keshkamat, CITDR

Section 143(3)Section 144Section 145Section 145(3)Section 263Section 44ASection 68

…tly the AO has not specifically invoked the provisions of section 41 (1). Further in any case no such addition can be made u/s 41. In this connection we are putting our reliance in the judgment in the case of DSA Engineers. In the case of DSA Engineers v. ITO 30 SOT 31 (Mum-Trib), the AO found that there were creditor balances which in many cases were 3 years or more than 3 years old. As per the assessee the balances represented amounts due to various parties and the liability was subsisting. The Tribunal held that in the absence of cessation of liabilities and on the mere fact that the amounts were outstanding f…

Shri Navneet Modi, Ranchi vs. DCIT, Circle-2, Ranchi

In the result, both appeals of the assessee are allowed

ITA 106/RAN/2019[2015-16]Status: DisposedITAT Ranchi30 Oct 2019AY 2015-16

Bench: Shri C.M.Garg, Jm & Shri L.P. Sahu, Am आयकर अऩीऱ सं./Ita No.106/Ran/2019 & आयकर अऩीऱ सं./Ita No.53/Ran/2019 (नििाारण वषा / Assessment Year :2015-2016 & 2013-2014) Shri Navneet Modi, Vs. Dcit, Circle-2, Ranchi Modi House, Kanke Dam Side Road, Kanke, Ranchi स्थायी ऱेखा सं./ Pan No. : Actpm 1511 F (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri Devesh Poddar, Advocate राजस्व की ओर से /Revenue By : Shri Inderjeet Singh, Cit(Dr)

For Appellant: Shri Devesh Poddar, AdvocateFor Respondent: Shri Inderjeet Singh, CIT(DR)

Section 143(3)Section 234ASection 271(1)(c)Section 68

…tly the AO has not specifically invoked the provisions of section 41 (1). Further in any case no such addition can be made u/s 41. In this connection we are putting our reliance in the judgment in the case of DSA Engineers. In the case of DSA Engineers v. ITO 30 SOT 31 (Mum-Trib), the AO found that there were creditor balances which in many cases were 3 years or more than 3 years old. As per the assessee the balances represented amounts due to various parties and the liability was subsisting. The Tribunal held that in the absence of cessation of liabilities and on the mere fact that the amounts were outstanding f…

ACIT 32(3), Mumbai vs. Rushi Builders & Developers, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 580/MUM/2017[2010-11]Status: DisposedITAT Mumbai24 Apr 2019AY 2010-11

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2010-11

For Appellant: Dr. K. Shivaram, A.RFor Respondent: Shri D.G. Pansari, D.R

Section 133(6)

…is no unilateral write back of balances by the assessee, the addition cannot be made u/ s 41(1) of the Act: 1. CIT v Shri Vardhman Overseas Ltd. (2012) 343 ITR 408 (Del) 2. CITv Nitin Garg [2012] 22 taxmann.com 59 (Guj.) 3. DSA Engineers (Bombay) v ITO [2009] 30 SOT 31 (MUM.) Further, in this case, the debts are not yet time barred. The Id Assessing Officer has not produced any evidence that the liability has ceased in the subsequent years. Hence, there is no basis for the Id Assessing Officer invoking the provisions of Section 41(1) of the Act. Thus the addition of Rs 39,65,208/- u/s 41 (1) of the Act is found t…

M/S. Aditya Peripherals Pvt. Ltd., Kolhapur vs. Additional Commissioner of Income-Tax

In the result, the appeal of assessee is partly allowed in the manner aforesaid

ITA 2060/PUN/2014[2011-12]Status: DisposedITAT Pune19 Jan 2018AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri Pramod ShingteFor Respondent: Shri Achal Sharma

Section 143(2)Section 40A(2)(b)Section 41(1)

…rading in the products of other vendors as well. The ld. AR in support of his submissions placed reliance on the following decisions : i. Principal Commissioner of Income Tax Vs. Ramgopal Minerals, 394 ITR 696 (Kar.); ii. DSA Engineers Vs. Income Tax Officer, 30 SOT 31 (Mum.); iii. Jagdamba Rollers Flour Mill Ltd. Vs. Assistant Commissioner of Income Tax, 117 ITD 260 (Nagpur)(TM). 4. On the other hand Shri Achal Sharma representing the Department vehemently defended the findings of Commissioner of Income Tax (Appeals). The ld. DR submitted that discrete enquiries made by Assessing Officer reveal that the lady Di…

Income Tax Officer-Ward-12(1), Kolkata vs. M/S Standard Leather Pvt. Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 2620/KOL/2013[2010-2011]Status: DisposedITAT Kolkata07 Sept 2016AY 2010-2011

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2010-11

Section 133(6)Section 143(3)Section 40A(3)

…tly the AO has not specifically invoked the provisions of section 41 (1). Further in any case no such addition can be made u/s 41. In this connection we are putting our reliance in the judgment in the case of DSA Engineers. In the case of DSA Engineers v. ITO 30 SOT 31 (Mum-Trib), the AO found that there were creditor balances which in many cases were 3 years or more than 3 years old. As per the assessee the balances represented amounts due to various parties and the liability was subsisting. The Tribunal held that in the absence of cessation of liabilities and on the mere fact that the amounts were outstanding f…

ITO 21(2)(3), Mumbai vs. Vishal K Ganatra, Mumbai

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

ITA 133/MUM/2013[2007-08]Status: DisposedITAT Mumbai10 Aug 2016AY 2007-08

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm Income Tax Officer-21(2)(4), Shri Vishal K. Ganatra Room No.503, 5Th Floor, C-10, 3Rd 12,Mahavir Bldg. Pratyaksh Kar Bhavan, Floor, K.D. Road, Vile Bandra Kurla Complex, Parle (W), Bandra (E), Mumbai-400 056. Mumbai-400 051. Pan: Aaxpg 1027Q Appellant .. Respondent

Section 133(6)Section 143(1)Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “F”, BENCH MUMBAI BEFORE SHRI JASON P. BOAZ, AM AND SHRI SANDEEP GOSAIN, JM Income Tax Officer-21(2)(4), Shri Vishal K. Ganatra Room NO.503, 5th floor, C-10, 3rd 12,Mahavir Bldg. Pratyaksh Kar Bhavan, Floor, K.D. Road, Vile Bandra Kurla Complex, Parle (W), Bandra (E), Mumbai-400 056. Mumbai-400 051. PAN: AAXPG 1027Q Appellant .. Respondent Appellant by Shri Shahnawazul Rahman Respondent by None Date of hearing: 16-05-2016 Date of pronouncement: 10-08-2016 O R D E R PER SANDEEP GOSAIN,JUDICIAL MEMBER: The present appeal has been filed by the Revenue against the order of the…

ITO 1(1)(2), Mumbai vs. Creatoz Builders P.Ltd, Mumbai

In the result, this appeal filed by the Revenue is dismissed

ITA 3055/MUM/2014[2010-11]Status: DisposedITAT Mumbai25 May 2016AY 2010-11

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2010-11 Ito 1(1) (2) Creatoz Builders P. Ltd. R.No.534/579 1St Floor, Capri Bld. G. Opp बनाम/ Aayakar Bhavan, Hdil, Tower, Vs. M.K. Rd. Anant Kanekar Marg, Bandra(E) Mumbai-400020 Mumbai-400051 (Revenue) (Respondent) P.A. No.Aaccc7278D

Section 143Section 68

…n you". Therefore, the conclusion derived by the AO by ignoring the confirmation, ledger account and audited balance sheet of transacting parties is not justified for this purpose. The decision relied upon by the appellant DSA Engineers (Bombay) v. ITO [2009] 30 SOT 31 and also the decision in the case of CIT vs. Sugauli. Sugar Works Pvt. Ltd. (1999) 236 ITR (SC) on the issue of section 41 of the I.T. Act (supra) is applicable, thereby making the edition invalid as per I.T. law. Hence, the AO is directed to delete the addition.” 4.2. It is noted by us that assessee showed existence of the impugned liability in t…

DSA Engineers v. ITO