Section 41(1) applies to Unpaid dues, whose recovery is time barred

Time-barred unpaid dues – Unpaid dues of employees, whose recovery is time barred, cease to be employer’s liability and have to be added under section 41(1) There are many judgments to the effect that there is neither remission nor cessation of the assessee’s  trading liability, within the meaning of Section 41(1) of the Income tax Act 1961 where there is neither any unilateral act of the creditor amounting to remission nor any bilateral act of the parties resulting in the liability ceasing to exist in law, even if  the recovery of the same has become time-barred.(J.K. Chemical...