https://www.taxtmi.com/caselaws?id=325679 Section 41(1) applies only where there is a remission or cessation of liability; mere non-payment to sundry creditors, unsupported comparisons with debtor recoveries, or absence of unilateral write-back does not establish deemed cessation, so the addition was not sustainable. A stock reduction explained by rain damage and disposal of damaged goods at a lump-sum price, supported by surrounding circumstances and without evidence of suppressed sales or unaccounted stock disposal, also could not justify an addition, so that disallowance was likewise not sustainable. The appellate order deleting both additions was upheld and the Revenue's appeals failed. en-us Wed, 10 Feb 2016 00:00:00 +0530 Wed, 16 Mar 2016 13:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325679 Section 41(1) applies only where there is a remission or cessation of liability; mere non-payment to sundry creditors, unsupported comparisons with debtor recoveries, or absence of unilateral write-back does not establish deemed cessation, so the addition was not sustainable. A stock reduction explained by rain damage and disposal of damaged goods at a lump-sum price, supported by surrounding circumstances and without evidence of suppressed sales or unaccounted stock disposal, also could not justify an addition, so that disallowance was likewise not sustainable. The appellate order deleting both additions was upheld and the Revenue's appeals failed. Case-Laws Income Tax Wed, 10 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325679