https://www.taxtmi.com/caselaws?id=200888 A later remission of an earlier trading liability is chargeable as business income under section 10(2-A) where the liability had been debited in mercantile accounts and later settled for a lower amount. An assessment made under section 23(4) on a best judgment basis is treated as an assessment of net income, so admissible business deductions are taken to have been allowed in arriving at that figure. The fact that the earlier assessment was estimated did not prevent taxation of the benefit arising on cessation of the liability, and the reference was answered in favour of the revenue. en-us Wed, 08 Jan 1964 00:00:00 +0530 Mon, 30 Apr 2018 17:45:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200888 A later remission of an earlier trading liability is chargeable as business income under section 10(2-A) where the liability had been debited in mercantile accounts and later settled for a lower amount. An assessment made under section 23(4) on a best judgment basis is treated as an assessment of net income, so admissible business deductions are taken to have been allowed in arriving at that figure. The fact that the earlier assessment was estimated did not prevent taxation of the benefit arising on cessation of the liability, and the reference was answered in favour of the revenue. Case-Laws Income Tax Wed, 08 Jan 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200888