https://www.taxtmi.com/caselaws?id=13587 For assessment year 1996-97, a unilateral write-back of trading liability in the assessee's books did not amount to remission or cessation of liability for tax under section 41(1) of the Income-tax Act, because actual legal cessation is required. The Supreme Court principles in Sugauli Sugar Works and Kesaria Tea Co. were applied, and Explanation 1, effective from 1 April 1997, was treated as prospective and not applicable to earlier years. Section 28(iv) was also found inapplicable on the stated facts. en-us Mon, 30 Jul 2007 00:00:00 +0530 Wed, 31 Dec 2014 11:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13587 For assessment year 1996-97, a unilateral write-back of trading liability in the assessee's books did not amount to remission or cessation of liability for tax under section 41(1) of the Income-tax Act, because actual legal cessation is required. The Supreme Court principles in Sugauli Sugar Works and Kesaria Tea Co. were applied, and Explanation 1, effective from 1 April 1997, was treated as prospective and not applicable to earlier years. Section 28(iv) was also found inapplicable on the stated facts. Case-Laws Income Tax Mon, 30 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13587