https://www.taxtmi.com/caselaws?id=412868 Section 41(1) could not be invoked where the creditor had unilaterally written off the debt but the assessee continued to show the liability in its books. The provision applies to a benefit arising from remission or cessation of a trading liability in the assessee's hands, and the explanation extends it to the assessee's own unilateral write-off. As the liability had not ceased for the assessee and there was no corresponding write-off in its accounts, the mere fact that the creditor no longer treated the amount as recoverable did not trigger taxation under section 41(1). The addition was therefore unsustainable and was deleted. en-us Thu, 23 Sep 2021 00:00:00 +0530 Wed, 29 Sep 2021 15:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=412868 Section 41(1) could not be invoked where the creditor had unilaterally written off the debt but the assessee continued to show the liability in its books. The provision applies to a benefit arising from remission or cessation of a trading liability in the assessee's hands, and the explanation extends it to the assessee's own unilateral write-off. As the liability had not ceased for the assessee and there was no corresponding write-off in its accounts, the mere fact that the creditor no longer treated the amount as recoverable did not trigger taxation under section 41(1). The addition was therefore unsustainable and was deleted. Case-Laws Income Tax Thu, 23 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=412868