https://www.taxtmi.com/caselaws?id=66681 Section 41(1) applies only when a trading liability, for which a deduction was earlier allowed, is remitted or ceases in law during the relevant year. A mere unilateral write-back of a contingent excise duty liability in the books does not, by itself, establish remission or cessation where the liability remains legally subsisting and the excise proceedings are not finalised. The assessee had reaffirmed that the liability would be taxed only when finally determined, and the later final assessment by the excise authorities showed that the matter had not concluded in the year under appeal. The write-back was therefore not taxable under section 41(1). en-us Thu, 25 Apr 1996 00:00:00 +0530 Sat, 05 Mar 2011 15:59:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66681 Section 41(1) applies only when a trading liability, for which a deduction was earlier allowed, is remitted or ceases in law during the relevant year. A mere unilateral write-back of a contingent excise duty liability in the books does not, by itself, establish remission or cessation where the liability remains legally subsisting and the excise proceedings are not finalised. The assessee had reaffirmed that the liability would be taxed only when finally determined, and the later final assessment by the excise authorities showed that the matter had not concluded in the year under appeal. The write-back was therefore not taxable under section 41(1). Case-Laws Income Tax Thu, 25 Apr 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66681