https://www.taxtmi.com/caselaws?id=354268 For deduction under Section 80HHC, interest is to be reduced on a net basis after setting off related interest expenditure against interest income under Explanation (baa); the Assessing Officer must recompute the deduction accordingly. Section 41(1) cannot be invoked merely because creditors are old: where liabilities remain recorded in audited accounts and are acknowledged or dealt with in later years, cessation or remission is not established on those facts. The deduction issue therefore required recomputation, while the addition for alleged cessation of liabilities was not justified. en-us Wed, 17 Jan 2018 00:00:00 +0530 Thu, 22 Mar 2018 14:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354268 For deduction under Section 80HHC, interest is to be reduced on a net basis after setting off related interest expenditure against interest income under Explanation (baa); the Assessing Officer must recompute the deduction accordingly. Section 41(1) cannot be invoked merely because creditors are old: where liabilities remain recorded in audited accounts and are acknowledged or dealt with in later years, cessation or remission is not established on those facts. The deduction issue therefore required recomputation, while the addition for alleged cessation of liabilities was not justified. Case-Laws Income Tax Wed, 17 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354268