https://www.taxtmi.com/caselaws?id=171956 Remission of an accrued trading liability under the mercantile system does not by itself create taxable income where no money or trading receipt is received. The assessee had earlier obtained deductions for interest payable on the liability, and the creditor later accepted a reduced settlement and waived the balance. Because the release was merely a compromise of an existing debt and did not produce a fresh receipt or trading profit, the remission was not chargeable to tax. The reference was answered in favour of the assessee. en-us Wed, 17 Mar 1948 00:00:00 +0530 Tue, 11 Aug 2015 14:15:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=171956 Remission of an accrued trading liability under the mercantile system does not by itself create taxable income where no money or trading receipt is received. The assessee had earlier obtained deductions for interest payable on the liability, and the creditor later accepted a reduced settlement and waived the balance. Because the release was merely a compromise of an existing debt and did not produce a fresh receipt or trading profit, the remission was not chargeable to tax. The reference was answered in favour of the assessee. Case-Laws Income Tax Wed, 17 Mar 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=171956