[aaykarbhavan] No sec. 41(1) addition as assessee had acknowledged trading liability and settled it in subsequent years

No sec. 41(1) addition as assessee had acknowledged trading liability and settled it in subsequent years

November 12, 2014[2014] 50 taxmann.com 112 (Ahmedabad - Trib.)/[2013] 28 ITR(T) 561 (Ahmedabad - Trib.)

IT : Where assessee had acknowledged liability for purchases and such liability in subsequent years was either settled by returning goods or by making payment by account payee cheques, liability had not ceased so as to make addition under section 41(1)

IT : Amount received as advance payment by way of sale proceeds of goods sold could not be treated as cash credit under section 68

IT : Where interest-bearing funds were diverted for giving interest-free advances to associate concern without showing any business expediency, proportionate interest on borrowed funds was to be disallowed

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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