https://www.taxtmi.com/caselaws?id=184317 A remission of a past business liability was not treated as a taxable revenue receipt in the year of settlement. The debt had arisen in the course of business, and the related interest had already been credited in earlier years and allowed as revenue deductions, but there was no finding that those entries were inflated, bogus, or unreal. On those facts, the waiver did not amount to an actual trading profit or a real accretion to profits in the relevant year. The remission of a prior indebtedness, by itself, does not create a trading receipt unless it represents a genuine profit arising in that year. en-us Tue, 16 Dec 1947 00:00:00 +0530 Tue, 05 Jul 2016 14:47:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184317 A remission of a past business liability was not treated as a taxable revenue receipt in the year of settlement. The debt had arisen in the course of business, and the related interest had already been credited in earlier years and allowed as revenue deductions, but there was no finding that those entries were inflated, bogus, or unreal. On those facts, the waiver did not amount to an actual trading profit or a real accretion to profits in the relevant year. The remission of a prior indebtedness, by itself, does not create a trading receipt unless it represents a genuine profit arising in that year. Case-Laws Income Tax Tue, 16 Dec 1947 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184317