https://www.taxtmi.com/caselaws?id=30733 The High Court held that the Tribunal's decisions were legally incorrect. The inclusion of a sum in the total income under section 41(1) of the Income-tax Act, 1961 was deemed unjustified as there was no conclusive evidence of the cessation or remission of liabilities without the possibility of revival. Merely adjusting liabilities in the profit and loss account does not signify their cessation in the eyes of the law. The Tribunal's finding that the liabilities had ceased and were non-revivable was legally unsustainable. The reference was answered in the negative, emphasizing the incorrectness of the Tribunal's decisions. en-us Wed, 24 Oct 2007 00:00:00 +0530 Thu, 18 Sep 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30733 The High Court held that the Tribunal's decisions were legally incorrect. The inclusion of a sum in the total income under section 41(1) of the Income-tax Act, 1961 was deemed unjustified as there was no conclusive evidence of the cessation or remission of liabilities without the possibility of revival. Merely adjusting liabilities in the profit and loss account does not signify their cessation in the eyes of the law. The Tribunal's finding that the liabilities had ceased and were non-revivable was legally unsustainable. The reference was answered in the negative, emphasizing the incorrectness of the Tribunal's decisions. Case-Laws Income Tax Wed, 24 Oct 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30733