https://www.taxtmi.com/caselaws?id=206306 The Tribunal upheld the CIT(A)'s decision that the forfeiture of Rs. 1,63,20,000 did not constitute a cessation of liability under Section 41(1) of the Income-tax Act. As the liability had not been written off in the accounts due to ongoing litigation, the Tribunal ruled that Section 41(1) was not applicable. Therefore, the forfeited amount could not be considered as business income for the assessment year 2005-06. The Department's appeal was dismissed, affirming that there was no cessation of liability, and the forfeited amount was not taxable as business income. en-us Thu, 31 Mar 2011 00:00:00 +0530 Sat, 22 Oct 2011 08:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206306 The Tribunal upheld the CIT(A)'s decision that the forfeiture of Rs. 1,63,20,000 did not constitute a cessation of liability under Section 41(1) of the Income-tax Act. As the liability had not been written off in the accounts due to ongoing litigation, the Tribunal ruled that Section 41(1) was not applicable. Therefore, the forfeited amount could not be considered as business income for the assessment year 2005-06. The Department's appeal was dismissed, affirming that there was no cessation of liability, and the forfeited amount was not taxable as business income. Case-Laws Income Tax Thu, 31 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206306