https://www.taxtmi.com/caselaws?id=468292 Outstanding sundry creditors may be taxed as cessation of trading liability where enquiries establish that creditors are untraceable or deny transactions, and the taxpayer cannot provide reliable confirmations or supporting evidence. Section 41(1) applies when a liability has been remitted or has ceased in substance, resulting in a taxable business benefit. Absence of a written-back entry in the accounts does not preclude taxation if the facts demonstrate that no genuine subsisting obligation remains. The addition was upheld on the basis that the disputed liabilities were non-genuine and had effectively ceased to exist. en-us Tue, 19 Jun 2018 00:00:00 +0530 Mon, 27 Apr 2026 13:19:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468292 Outstanding sundry creditors may be taxed as cessation of trading liability where enquiries establish that creditors are untraceable or deny transactions, and the taxpayer cannot provide reliable confirmations or supporting evidence. Section 41(1) applies when a liability has been remitted or has ceased in substance, resulting in a taxable business benefit. Absence of a written-back entry in the accounts does not preclude taxation if the facts demonstrate that no genuine subsisting obligation remains. The addition was upheld on the basis that the disputed liabilities were non-genuine and had effectively ceased to exist. Case-Laws Income Tax Tue, 19 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468292