https://www.taxtmi.com/caselaws?id=774832 The Madras HC held that Section 41(1) provisions regarding cessation of liability were not applicable where suits filed by creditor were sub judice and pending adjudication. The court ruled that when claims remain under litigation without finality, liability cannot be deemed ceased or remitted merely through accounting entries. Following Supreme Court precedent in Sugauli Sugar Works, the court emphasized that unilateral book entries by debtor without creditor action cannot establish liability cessation. The provision requires actual benefit to debtor through remission or cessation, not pending litigation status. Decision favored assessee. en-us Thu, 03 Jul 2025 00:00:00 +0530 Tue, 15 Jul 2025 08:39:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774832 The Madras HC held that Section 41(1) provisions regarding cessation of liability were not applicable where suits filed by creditor were sub judice and pending adjudication. The court ruled that when claims remain under litigation without finality, liability cannot be deemed ceased or remitted merely through accounting entries. Following Supreme Court precedent in Sugauli Sugar Works, the court emphasized that unilateral book entries by debtor without creditor action cannot establish liability cessation. The provision requires actual benefit to debtor through remission or cessation, not pending litigation status. Decision favored assessee. Case-Laws Income Tax Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774832