https://www.taxtmi.com/caselaws?id=25053 Mere transfer of liabilities from separate accounts to a general reserve account does not, by itself, establish remission or cessation of liability or justify an income addition. Remission requires facts showing a clear waiver or other legally effective extinguishment, and a unilateral accounting entry by the debtor is insufficient. Interest paid on arrears of cane cess and sugarcane purchase tax was treated as deductible revenue expenditure, following the settled principle applied to such statutory arrears. On those grounds, the disputed additions and disallowances were not sustained. en-us Thu, 17 Mar 1988 00:00:00 +0530 Mon, 25 Jan 2010 11:05:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25053 Mere transfer of liabilities from separate accounts to a general reserve account does not, by itself, establish remission or cessation of liability or justify an income addition. Remission requires facts showing a clear waiver or other legally effective extinguishment, and a unilateral accounting entry by the debtor is insufficient. Interest paid on arrears of cane cess and sugarcane purchase tax was treated as deductible revenue expenditure, following the settled principle applied to such statutory arrears. On those grounds, the disputed additions and disallowances were not sustained. Case-Laws Income Tax Thu, 17 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25053