https://www.taxtmi.com/caselaws?id=795523 Trading liabilities may be taxed under Section 41(1) only where the assessee obtains an actual benefit from their remission or cessation. Foreign trade payables that remained recorded, were not written back, and yielded no such benefit could not be treated as deemed income merely because operations were suspended or creditors were allegedly non-functional. Domestic sundry creditors could not be treated as bogus solely for non-compliance with summons or enquiry notices where supporting evidence was furnished and no defects were identified. Continued recognition and subsequent payments supported the subsistence of the liabilities. en-us Fri, 17 Jul 2026 00:00:00 +0530 Thu, 23 Jul 2026 08:42:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795523 Trading liabilities may be taxed under Section 41(1) only where the assessee obtains an actual benefit from their remission or cessation. Foreign trade payables that remained recorded, were not written back, and yielded no such benefit could not be treated as deemed income merely because operations were suspended or creditors were allegedly non-functional. Domestic sundry creditors could not be treated as bogus solely for non-compliance with summons or enquiry notices where supporting evidence was furnished and no defects were identified. Continued recognition and subsequent payments supported the subsistence of the liabilities. Case-Laws Income Tax Fri, 17 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795523