https://www.taxtmi.com/caselaws?id=385632 Section 41(1) applies only when a liability has been remitted or has otherwise ceased to exist, and that condition was not established on these facts. Outstanding trade creditors continued to appear in the balance sheet, the assessee had not written them back to profit and loss account, the unit remained a sick industrial concern, and the winding-up process was incomplete while proceedings were still pending before the appellate industrial authority. The liability was therefore not treated as having ceased, and the addition under section 41(1) was deleted. en-us Tue, 04 Jun 2019 00:00:00 +0530 Tue, 10 Sep 2019 09:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=385632 Section 41(1) applies only when a liability has been remitted or has otherwise ceased to exist, and that condition was not established on these facts. Outstanding trade creditors continued to appear in the balance sheet, the assessee had not written them back to profit and loss account, the unit remained a sick industrial concern, and the winding-up process was incomplete while proceedings were still pending before the appellate industrial authority. The liability was therefore not treated as having ceased, and the addition under section 41(1) was deleted. Case-Laws Income Tax Tue, 04 Jun 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=385632