Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (199 ITR 14)

Q: What is Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT authority for?

The cessation of a liability for the purpose of Section 41(1) requires an irrevocable cessation, meaning there is no possibility of the liability being revived in the future.

Q: How many judgments cite Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT?

34 judgments on BharatTax cite Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (199 ITR 14), spanning 1998 to 2023.

ITO, CHENNAI vs. M/S SPORTING PASTIME INDIA LTD., COIMBATORE

ITA 2403/CHNY/2006[2004-05]Status: DisposedITAT Chennai18 Oct 2023AY 2004-05

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri R. Clement Ramesh Kumar, CITFor Respondent: Shri R. Vijayaraghavan, Advocate

Section 143(3)Section 41(1)

…nt only as a provision for a loss on sale of investments and has not claimed any long term capital loss in its I.T.return for the a-y 2005-06. 2.2. Having regard to the decision of the Hon'ble Supreme Court in the case of Union of India v. J.K.Synthetics Ltd.(199 ITR 14), wherein the ratio that a cessation of liability for the purposes of Sec.41(1) would mean irrevocable cessation, so that there is no possibility of the liability being revived in future was upheld, the learned CIT(A) ought to have upheld the action of the assessing officer. In the instant case, the learned CIT(A) ought to have seen that there is…

M/S ABHYANKAR BROTHERS,MUMBAI vs. ACIT-17(1), MUMBAI

The appeal of the assessee is partly allowed

ITA 6558/MUM/2018[2013-14]Status: DisposedITAT Mumbai31 Aug 2021AY 2013-14

Bench: Sri Mahavir Singh, Vp & Sri M. Balaganesh, Am आमकय अऩीर सिं./ Ita No. 6558/Mum/2018 (ननधाायण वषा / Assessment Year 2013-14) M/S Abhyankar Brothers The Commissioner Of 216, Sant Tukaram Road, Carnac Income Tax, Circle-55 5Th Bunder, Mumbai-400 009 Floor, Earnest House, फनाभ/ Ncpa Marg, Mumbai-400 Vs. 021 (अऩीराथी / Appellant) (प्रत्मथी/ Respondent) स्थामी रेखा सिं./Pan No. Aaafa2467K अऩीराथी की ओय से/ Appellant By : Ms. Chaitee Lodhe, Ar प्रत्मथी की ओय से/ Respondent By : Shri. Brajendra Kumar, Dr सुनवाई की तायीख / Date Of Hearing: 29.06.2021 घोषणा की तायीख / Date Of Pronouncement: 31.08.2021 आदेश / O R D E R भहावीय ससिंह, उऩाध्मऺ के द्वाया / Per Mahavir Singh, Vp: This Appeal Of Assessee Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals)]-55 Mumbai, [In Short Cit(A)], In Appeal No. Cit(A)-55/Acit-17(1)/It-431/17-18 Dated 28.08.2018. The Assessment Was Framed By The Asst. Commissioner Of Income Tax, Circle 17(1), Mumbai (In Short Acit/ Ao) For The A.Y. 2013-14 Vide Order Dated 20.03.2016 Under Section 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’). The First Issue In This Appeal Of Assessee Is Against The Order Of 2. Cit(A) Confirming The Action Of The Assessing Officer In Disallowing Interest Under Section 37 Of The Act By Holding The Same Not For The Abhyankar Brothers; Ay 13-14 Purpose Of Business. For This, The Assessee Has Raised The Following Grounds: -

For Appellant: Ms. Chaitee Lodhe, ARFor Respondent: Shri. Brajendra Kumar, DR

Section 143(3)Section 37

…nding hence, the provisions of section 41(1) of the Act will not apply. We are taken help from the judicial pronouncement of the Hon’ble Apex Court in the case of CIT vs. Sugauli Sugar Works (P) Ltd. (1999) 236 ITR 518 (SC) and U.O.I. vs J.K. Synthetics Ltd. (199 ITR 14) (SC). We are of the view that once Abhyankar Brothers; AY 13-14 there is no write back of the liability payable to creditors and which is duly disclosed in the balance sheet as on 31.03.2013, the liability has not ceased to exists within the meaning of section 41(1) of the Act. Hence, the addition made by Assessing Officer and confirmed by CIT(A)…

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)

…hat the remission of the liability arises when the creditor voluntarily gives up the claim. The cessation of such liability arises only when it ceases to exist in the eyes of law for all intents and purposes. In the case of UOI v.J. K.. Synthetics Ltd. (1993) 199 ITR 14 (SC), the Hon’ble Court held that cessation of liability for the purpose of section 41(1) means irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not complete and section 41 (1) is not attracted. In the case of Shri Vardhman Overseas Ltd. vs. Asstt.…

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

…hat the remission of the liability arises when the creditor voluntarily gives up the claim. The cessation of such liability arises only when it ceases to exist in the eyes of law for all intents and purposes. In the case of UOI v.J. K.. Synthetics Ltd. (1993) 199 ITR 14 (SC), the Hon'ble Court held that ITA No.2620/Kol/2013 A.Y. 2010-11 ITO Wd-12(1), Kol. vs. M/s Standard Leather Pvt. Ltd. Page 15 cessation of liability for the purpose of section 41(1) means irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not com…

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

…hat the remission of the liability arises when the creditor voluntarily gives up the claim. The cessation of such liability arises only when it ceases to exist in the eyes of law for all intents and purposes. In the case of UOI v.J. K.. Synthetics Ltd. (1993) 199 ITR 14 (SC), the Hon'ble Court held that ITA No.2620/Kol/2013 A.Y. 2010-11 ITO Wd-12(1), Kol. vs. M/s Standard Leather Pvt. Ltd. Page 15 cessation of liability for the purpose of section 41(1) means irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not com…

THE ITO, WARD- 1(2),, BHAVNAGAR vs. M/S. ALCOCK ASHDOWN GUJARAT LTD.,, BHAVNAGAR

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

ITA 615/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad25 Feb 2019AY 2011-12

Bench: Shri Amarjit Singh & Ms Madhumita Royअपील सं./Ita No.615/Ahd/2016 &"नधा"रण वष"/Asstt. Year:2011-2012

For Respondent: Shri L.P. Jain, Sr.D.R

Section 41(1)

…eye of Law and addition thereof is uncalled for. 4.2 The Ld.CIT (A) has taken into consideration the entire aspect of the matter as observed by us. He also took note of the ratio laid down by the Hon’ble SC passed in the matter of J.K. Synthetic reported in 199 ITR 14(SC) where it has been decided that if there is no possibility of revival of debt in future then only liabilities can be treated as ceased. Further that if there is no A.Y.2011-2012 4 cogent reason and material evidence in support that liabilities has ceased to exists then liabilities cannot be treated as ceased to exist. Remission and cessation ar…

INCOME TAX OFFICER-WARD-12(1), KOLKATA, 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)

…hat the remission of the liability arises when the creditor voluntarily gives up the claim. The cessation of such liability arises only when it ceases to exist in the eyes of law for all intents and purposes. In the case of UOI v.J. K.. Synthetics Ltd. (1993) 199 ITR 14 (SC), the Hon’ble Court held that ITA No.2620/Kol/2013 A.Y. 2010-11 ITO Wd-12(1), Kol. vs. M/s Standard Leather Pvt. Ltd. Page 15 cessation of liability for the purpose of section 41(1) means irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not com…

ITO 20(3)(4), MUMBAI vs. VIKRAM A PRADHAN, MUMBAI

In the result, Revenue’s appeal for assessment year 2007-08 is dismissed

ITA 2212/MUM/2012[2008-09]Status: DisposedITAT Mumbai24 Aug 2016AY 2008-09

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainthe Income Tax Officer 20(3)(4), 511, Piramal Chambers, Lalbaug, Mumbai 400 012 ... Appellant Vs.

For Appellant: Shri M. V.RajguruFor Respondent: None

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

…addition be deleted. The Ld. CIT(A) after considering the material on record and referring to the judicial pronouncements of the Hon’ble Apex Court in the cases of CIT vs. Sugauli Sugar Works (P) Ltd. (1999) 236 ITR 518 (SC) and U.O.I vs. J.K.Synthetics Ltd. (199 ITR 14) (SC) held that in the case on hand there is no write back of the liability payable to various creditors which is duly disclosed in the assessee’s Balance Sheet as on 31/3/2007. The Ld.CIT(A) also observed that no independent inquiries were carried out by the Assessing Officer to establish that these creditors have written off the debts appearing…