https://www.taxtmi.com/caselaws?id=352409 The court held that the adjustment of funds between related entities did not constitute a cessation or remission of liability under Section 41(1) of the Income Tax Act, 1961. The courts emphasized that the section applies to transactions where a liability is done away without any consideration passing from the assessee to its creditor. Additionally, the court ruled that the subsidiary status of the company did not alter the application of Section 41 in this context, as the two companies are separate juristic persons. The decision was made in favor of the assessee, dismissing the appeal with no costs awarded. en-us Thu, 07 Dec 2017 00:00:00 +0530 Tue, 11 Dec 2018 18:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352409 The court held that the adjustment of funds between related entities did not constitute a cessation or remission of liability under Section 41(1) of the Income Tax Act, 1961. The courts emphasized that the section applies to transactions where a liability is done away without any consideration passing from the assessee to its creditor. Additionally, the court ruled that the subsidiary status of the company did not alter the application of Section 41 in this context, as the two companies are separate juristic persons. The decision was made in favor of the assessee, dismissing the appeal with no costs awarded. Case-Laws Income Tax Thu, 07 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352409