https://www.taxtmi.com/caselaws?id=26890 Section 41(1) of the Income-tax Act applies only where an earlier allowance or deduction in respect of a trading liability is followed by a benefit through remission or cessation of that liability. In the context of unclaimed bonus written back in the accounts, the existence of an unpaid entry or a possible industrial dispute is not conclusive. The liability must be examined in substance, having regard to both the income-tax provisions and the Payment of Bonus Act, including the factual position after prolonged non-claim and write-back. The tribunal's approach was criticised as incomplete because it did not fully test whether the bonus had in effect ceased to remain a real liability. en-us Mon, 18 Feb 1985 00:00:00 +0530 Tue, 09 Feb 2010 11:46:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26890 Section 41(1) of the Income-tax Act applies only where an earlier allowance or deduction in respect of a trading liability is followed by a benefit through remission or cessation of that liability. In the context of unclaimed bonus written back in the accounts, the existence of an unpaid entry or a possible industrial dispute is not conclusive. The liability must be examined in substance, having regard to both the income-tax provisions and the Payment of Bonus Act, including the factual position after prolonged non-claim and write-back. The tribunal's approach was criticised as incomplete because it did not fully test whether the bonus had in effect ceased to remain a real liability. Case-Laws Income Tax Mon, 18 Feb 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26890