Cessation Vs Subsistence

This ruling reinforces the high evidentiary threshold for invoking Section 41(1). 

The ITAT rejects a mechanical approach based on aging of liabilities and emphasizes that cessation must be real, demonstrable, and year-specific. 

Where subsequent discharge is asserted, the matter cannot be concluded without verification. 

The Tribunal accordingly remanded the matter, signaling that Section 41(1) cannot operate on presumption or evidentiary gaps alone.