https://www.taxtmi.com/caselaws?id=13014 Section 41(1) applies only where there is remission by the creditor or a cessation of liability; a mere write-back of an earlier provision does not suffice. As the employees entitled to bonus had neither executed any remission nor waived their entitlement, and the assessee's liability had not otherwise ended, there was no cessation. Expiry of the limitation period for enforcing recovery does not extinguish the liability, even if it becomes legally unenforceable. Consequently, the excess bonus provision written off could not be treated as taxable income under section 41(1), and the deletion of the addition was upheld against the Revenue. en-us Fri, 12 Jan 2001 00:00:00 +0530 Mon, 05 Jan 2026 17:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13014 Section 41(1) applies only where there is remission by the creditor or a cessation of liability; a mere write-back of an earlier provision does not suffice. As the employees entitled to bonus had neither executed any remission nor waived their entitlement, and the assessee's liability had not otherwise ended, there was no cessation. Expiry of the limitation period for enforcing recovery does not extinguish the liability, even if it becomes legally unenforceable. Consequently, the excess bonus provision written off could not be treated as taxable income under section 41(1), and the deletion of the addition was upheld against the Revenue. Case-Laws Income Tax Fri, 12 Jan 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13014