https://www.taxtmi.com/caselaws?id=14424 The dominant issue was whether unclaimed credit balances transferred to the profit and loss account could be taxed as deemed income under s. 41(1) of the Income-tax Act, 1961, on cessation of liability. Relying on SC authority, the HC held that amounts received in the course of trading transactions, though not taxable on receipt, assume the character of income when they become the assessee's own money due to limitation or other statutory/contractual rights, and commercial reality warrants treating such accretions as income. Applying this principle, the HC held the credit balance represented cessation of liability and was taxable under s. 41(1), reversing the Tribunal's deletion and answering the reference against the assessee and in favour of the Revenue. en-us Thu, 15 Feb 2001 00:00:00 +0530 Mon, 05 Jan 2026 23:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14424 The dominant issue was whether unclaimed credit balances transferred to the profit and loss account could be taxed as deemed income under s. 41(1) of the Income-tax Act, 1961, on cessation of liability. Relying on SC authority, the HC held that amounts received in the course of trading transactions, though not taxable on receipt, assume the character of income when they become the assessee's own money due to limitation or other statutory/contractual rights, and commercial reality warrants treating such accretions as income. Applying this principle, the HC held the credit balance represented cessation of liability and was taxable under s. 41(1), reversing the Tribunal's deletion and answering the reference against the assessee and in favour of the Revenue. Case-Laws Income Tax Thu, 15 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14424