https://www.taxtmi.com/caselaws?id=180374 Section 41(1) applies only where an earlier deduction is followed by a real remission or cessation of liability in law. A mere write-back of the commission amount in the assessee's accounts was only a unilateral accounting entry and did not itself extinguish the statutory debt. The liability to deposit the collections under the Bihar Sugar Cane (Regulation of Supply and Purchase) (Second) Ordinance, 1969 continued to subsist, and the correspondence showed only a modification in the mode of deposit, not a termination of the obligation. The commission amount was therefore not assessable as income under section 41(1) on the ground of cessation of liability. en-us Fri, 14 Jan 1994 00:00:00 +0530 Tue, 22 Mar 2016 15:40:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180374 Section 41(1) applies only where an earlier deduction is followed by a real remission or cessation of liability in law. A mere write-back of the commission amount in the assessee's accounts was only a unilateral accounting entry and did not itself extinguish the statutory debt. The liability to deposit the collections under the Bihar Sugar Cane (Regulation of Supply and Purchase) (Second) Ordinance, 1969 continued to subsist, and the correspondence showed only a modification in the mode of deposit, not a termination of the obligation. The commission amount was therefore not assessable as income under section 41(1) on the ground of cessation of liability. Case-Laws Income Tax Fri, 14 Jan 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180374