https://www.taxtmi.com/caselaws?id=471397 Section 41(1) requires remission or cessation of an existing trading liability; a finding that creditors are non-genuine does not by itself establish that an outstanding liability has ceased. Non-genuineness may instead concern the allowability of expenditure linked to the underlying transactions. Where outstanding creditor balances are subsequently discharged through banking channels, that payment negates an inference of cessation during the relevant assessment year. Additions treating such balances as income on alleged cessation of liability are therefore unsustainable and liable to be deleted. en-us Fri, 04 Apr 2025 00:00:00 +0530 Tue, 01 Sep 2026 19:02:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471397 Section 41(1) requires remission or cessation of an existing trading liability; a finding that creditors are non-genuine does not by itself establish that an outstanding liability has ceased. Non-genuineness may instead concern the allowability of expenditure linked to the underlying transactions. Where outstanding creditor balances are subsequently discharged through banking channels, that payment negates an inference of cessation during the relevant assessment year. Additions treating such balances as income on alleged cessation of liability are therefore unsustainable and liable to be deleted. Case-Laws Income Tax Fri, 04 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471397