ITR150 (Gujarat) ITO v. Maharashtra State Co-operative, Consumers' Federation 5 Ltd.

M/S GREEN STAR CORPORATION,KOLKATA vs. ACIT, CIRCLE - 45, KOLKATA, KOLKATA

In the result, the appeal of assessee is allowed in part

Bench: Hon’Ble Shri J. Sudhakar Reddy, Am & Hon’Ble Shri A. T. Varkey, Jm Assessment Year: 2011-12

…ther in peculiar facts of case amount in question could not be added back in income of assessee as deemed income under section 41(1) - Held, yes [Para 8] [In favour of assessee] iii) ITAT Mumbai in the case of Maharashtra State Coop. Consumers Federation Ltd, 13 Taxmann.com 163 (Mum). I. Section 41(1) of the Income-tax Act, 1961 - Remission or cessation of trading liability – Assessment year 2005-06 - During assessment proceedings, Assessing Officer observed that there was a liability of Rs. 10,85,531 pending for more than 5 years on assessee and same had not been claimed by creditors; therefore, he added this am…