https://www.taxtmi.com/caselaws?id=176160 Unsecured loans outstanding for more than three years were not taxable as income under section 41(1) merely because the recovery period had expired. The Tribunal held that expiry of limitation only bars the remedy to sue and does not by itself extinguish the debt or establish remission or cessation of liability. Recorded loans, creditor confirmations, and the absence of evidence that the creditors had abandoned the claims supported the finding that the liabilities had not finally ceased. The amounts were also not trading liabilities for section 41(1). The addition was therefore deleted and the assessee's claim succeeded. en-us Thu, 29 Nov 2012 00:00:00 +0530 Tue, 15 Dec 2015 14:40:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=176160 Unsecured loans outstanding for more than three years were not taxable as income under section 41(1) merely because the recovery period had expired. The Tribunal held that expiry of limitation only bars the remedy to sue and does not by itself extinguish the debt or establish remission or cessation of liability. Recorded loans, creditor confirmations, and the absence of evidence that the creditors had abandoned the claims supported the finding that the liabilities had not finally ceased. The amounts were also not trading liabilities for section 41(1). The addition was therefore deleted and the assessee's claim succeeded. Case-Laws Income Tax Thu, 29 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=176160