https://www.taxtmi.com/caselaws?id=151058 Unclaimed employee dues previously allowed as trading deductions do not become taxable merely because the assessee writes them back from a liability account to the profit and loss account. A mere lapse of limitation does not extinguish the debt, and a unilateral accounting entry cannot by itself create remission or cessation of liability. Where the unpaid wages, salaries and bonus remain enforceable under labour law, the liability continues in law and the bookkeeping treatment does not alter that position. The benefit under section 10(2A) arises only when a trading liability is actually remitted or has ceased in law; accordingly, such amounts are not assessable as deemed income on the facts discussed. en-us Fri, 18 Feb 1966 00:00:00 +0530 Tue, 28 May 2013 14:13:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151058 Unclaimed employee dues previously allowed as trading deductions do not become taxable merely because the assessee writes them back from a liability account to the profit and loss account. A mere lapse of limitation does not extinguish the debt, and a unilateral accounting entry cannot by itself create remission or cessation of liability. Where the unpaid wages, salaries and bonus remain enforceable under labour law, the liability continues in law and the bookkeeping treatment does not alter that position. The benefit under section 10(2A) arises only when a trading liability is actually remitted or has ceased in law; accordingly, such amounts are not assessable as deemed income on the facts discussed. Case-Laws Income Tax Fri, 18 Feb 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151058