https://www.taxtmi.com/caselaws?id=791694 Section 41(1) of the Income-tax Act applies only where there is a proved remission or cessation of liability; a mere transfer of balances from sundry creditors to a proprietor's capital account, without any waiver by the family members or fresh cash introduction, does not create taxable income. The same facts also defeated section 68, because no fresh credit was shown to have arisen during the year. The TDS and self-assessment tax component was treated as a book adjustment, not as undisclosed income or a separate taxable receipt. On that basis, the deletion of the addition was upheld. en-us Wed, 13 May 2026 00:00:00 +0530 Fri, 15 May 2026 09:15:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791694 Section 41(1) of the Income-tax Act applies only where there is a proved remission or cessation of liability; a mere transfer of balances from sundry creditors to a proprietor's capital account, without any waiver by the family members or fresh cash introduction, does not create taxable income. The same facts also defeated section 68, because no fresh credit was shown to have arisen during the year. The TDS and self-assessment tax component was treated as a book adjustment, not as undisclosed income or a separate taxable receipt. On that basis, the deletion of the addition was upheld. Case-Laws Income Tax Wed, 13 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791694