https://www.taxtmi.com/caselaws?id=23893 The High Court of Punjab and Haryana ruled in favor of the assessee, Lal Textile Finishing Mills (P.) Ltd., regarding the unclaimed liabilities of Rs. 48,610 written back in its profit and loss account. The court held that the amount did not constitute cessation or remission of liabilities under section 41(1) of the Income-tax Act, 1961, and therefore should not be included in taxable income for the relevant assessment year. The court emphasized that for an amount to be taxed under section 41(1), it must have been allowed as a deduction in a previous year, which was not the case here. en-us Mon, 01 May 1989 00:00:00 +0530 Fri, 15 Jan 2010 11:16:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23893 The High Court of Punjab and Haryana ruled in favor of the assessee, Lal Textile Finishing Mills (P.) Ltd., regarding the unclaimed liabilities of Rs. 48,610 written back in its profit and loss account. The court held that the amount did not constitute cessation or remission of liabilities under section 41(1) of the Income-tax Act, 1961, and therefore should not be included in taxable income for the relevant assessment year. The court emphasized that for an amount to be taxed under section 41(1), it must have been allowed as a deduction in a previous year, which was not the case here. Case-Laws Income Tax Mon, 01 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23893