https://www.taxtmi.com/caselaws?id=796578 Section 41(1) applies only when a trading liability is remitted or ceases and the assessee obtains a corresponding benefit. Long-outstanding sundry creditors, supported by confirmations and ledger accounts, do not become taxable merely because they remain unpaid or may be time-barred; nor can liabilities relating to earlier years be assessed as unexplained credits in the relevant year. The creditor-liability addition was therefore deleted. Differences between contract receipts in Form 26AS and recorded receipts require verification where the assessee claims that payer deductions represent VAT, insurance, TDS or other allowable business expenditure. The unreconciled amount was restored for verification and allowance if substantiated. en-us Wed, 28 Jan 2026 00:00:00 +0530 Fri, 07 Aug 2026 09:07:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796578 Section 41(1) applies only when a trading liability is remitted or ceases and the assessee obtains a corresponding benefit. Long-outstanding sundry creditors, supported by confirmations and ledger accounts, do not become taxable merely because they remain unpaid or may be time-barred; nor can liabilities relating to earlier years be assessed as unexplained credits in the relevant year. The creditor-liability addition was therefore deleted. Differences between contract receipts in Form 26AS and recorded receipts require verification where the assessee claims that payer deductions represent VAT, insurance, TDS or other allowable business expenditure. The unreconciled amount was restored for verification and allowance if substantiated. Case-Laws Income Tax Wed, 28 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796578