https://www.taxtmi.com/caselaws?id=339689 A brought forward provision for salary and statutory dues could not be taxed as a bogus or ceased liability under section 41(1) in the year under appeal when the assessee reversed the provision in subsequent years and those reversals were accepted in regular assessments. On those facts, no adverse inference could be drawn against the provision for the relevant year, and the amount could not be brought to tax merely because it appeared as an opening balance. The liability, if regarded as non-genuine, would have to be considered in the year of its genesis, not in a later year, to avoid double taxation. en-us Fri, 24 Feb 2017 00:00:00 +0530 Mon, 06 Mar 2017 09:06:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339689 A brought forward provision for salary and statutory dues could not be taxed as a bogus or ceased liability under section 41(1) in the year under appeal when the assessee reversed the provision in subsequent years and those reversals were accepted in regular assessments. On those facts, no adverse inference could be drawn against the provision for the relevant year, and the amount could not be brought to tax merely because it appeared as an opening balance. The liability, if regarded as non-genuine, would have to be considered in the year of its genesis, not in a later year, to avoid double taxation. Case-Laws Income Tax Fri, 24 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339689