Assessing Officer made a certain addition in income of assessee under section 41(1) with regard to credit balances of three parties appearing in his account books - He held that these creditors were having opening balances and this liability was not existing in account books during year - Record showed that assessee was still showing these creditors as liability and he had not written back said liability in account books - Whether in terms of provisions of section 41(1), impugned addition was not sustainable - Held, yes -Sheikh Abdul Farid[2015] 61 taxmann.com 176 (Lucknow - Trib.)

Chief CIT v. Kesaria Tea Co. Ltd. [2002] 254 ITR 434/122 Taxman 91 (SC) (para 5.3) and CIT v. Sugauli Sugar Works (P.) Ltd. [1999] 236 ITR 518/102 Taxman 713 (SC) (para 5.3) followed.