https://www.taxtmi.com/caselaws?id=796578 Section 41(1) applies only where a taxpayer obtains a benefit through remission or cessation of a trading liability; a long-outstanding creditor balance, even if potentially time-barred, does not by itself establish cessation. Creditor confirmations and ledger accounts supported the continuing liabilities, and liabilities from earlier years could not be treated as unexplained credits in the relevant year. The article also notes that differences between Form 26AS contract receipts and recorded receipts require verification where attributed to VAT, insurance, TDS or similar deductions; amounts proved to be allowable business expenditure may be allowed. 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 where a taxpayer obtains a benefit through remission or cessation of a trading liability; a long-outstanding creditor balance, even if potentially time-barred, does not by itself establish cessation. Creditor confirmations and ledger accounts supported the continuing liabilities, and liabilities from earlier years could not be treated as unexplained credits in the relevant year. The article also notes that differences between Form 26AS contract receipts and recorded receipts require verification where attributed to VAT, insurance, TDS or similar deductions; amounts proved to be allowable business expenditure may be allowed. Case-Laws Income Tax Wed, 28 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796578