https://www.taxtmi.com/caselaws?id=56248 Section 41(1) applies only where a trading liability has actually been remitted or has ceased in the relevant previous year, and the Revenue bears the burden of proving that cessation. Mere age of the sundry creditors, non-furnishing of addresses, unilateral book treatment, or the possibility that recovery is time-barred does not by itself create taxable income. On the facts, the liabilities were carried forward from earlier years, some payments were made subsequently, and no cogent material showed cessation during the year under appeal, so the addition was deleted. en-us Thu, 18 Oct 2001 00:00:00 +0530 Thu, 28 Apr 2016 15:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56248 Section 41(1) applies only where a trading liability has actually been remitted or has ceased in the relevant previous year, and the Revenue bears the burden of proving that cessation. Mere age of the sundry creditors, non-furnishing of addresses, unilateral book treatment, or the possibility that recovery is time-barred does not by itself create taxable income. On the facts, the liabilities were carried forward from earlier years, some payments were made subsequently, and no cogent material showed cessation during the year under appeal, so the addition was deleted. Case-Laws Income Tax Thu, 18 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56248