https://www.taxtmi.com/caselaws?id=36662 For section 41(1) of the Income-tax Act, 1961, a taxable benefit arises only on an actual remission or cessation of liability. A unilateral reversal of an accounting entry, including transfer of an amount earlier allowed as a deduction, does not by itself extinguish the liability or constitute cessation. On that basis, the amount reversed in the profit and loss account could not be taxed as a benefit under section 41(1), and the view favourable to the assessee was upheld. en-us Tue, 08 Apr 1980 00:00:00 +0530 Tue, 23 Mar 2010 17:22:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36662 For section 41(1) of the Income-tax Act, 1961, a taxable benefit arises only on an actual remission or cessation of liability. A unilateral reversal of an accounting entry, including transfer of an amount earlier allowed as a deduction, does not by itself extinguish the liability or constitute cessation. On that basis, the amount reversed in the profit and loss account could not be taxed as a benefit under section 41(1), and the view favourable to the assessee was upheld. Case-Laws Income Tax Tue, 08 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36662