https://www.taxtmi.com/caselaws?id=30207 The court ruled in favor of the assessee on the issue of cessation of liability under section 41(1) of the Income-tax Act, stating that the liability continues until the limitation period for creditors to claim expires. The court also found in favor of the assessee regarding the change in the method of accounting for bonus payments, allowing the deduction for the bona fide change. However, the court ruled in favor of the Revenue on the disallowance under section 40A(5) of the Act, emphasizing that section 40A(5) is not controlled by rule 3. Consequently, the parties were responsible for their own costs due to the mixed outcome. en-us Tue, 22 May 2007 00:00:00 +0530 Mon, 13 Jun 2011 19:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30207 The court ruled in favor of the assessee on the issue of cessation of liability under section 41(1) of the Income-tax Act, stating that the liability continues until the limitation period for creditors to claim expires. The court also found in favor of the assessee regarding the change in the method of accounting for bonus payments, allowing the deduction for the bona fide change. However, the court ruled in favor of the Revenue on the disallowance under section 40A(5) of the Act, emphasizing that section 40A(5) is not controlled by rule 3. Consequently, the parties were responsible for their own costs due to the mixed outcome. Case-Laws Income Tax Tue, 22 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30207