No addition u/s 41(1) in respect of balance of creditors appearing in books of accounts at the end of relevant year

As per the provisions of section 41(1) addition can be made towards remission or cessation of liability, if the following conditions are fulfilled. (i) In the assessment of an assessee, an allowance or deduction has been made in respect of any loss, expenditure or trading liability incurred by him (ii) (a) Any amount is obtained in respect of such loss or expenditure, or (b) Any benefit is obtained in respect of such trading liability by way of remission or cessation thereof (iii) Such amount or benefit is obtained by the assessee; and (iv) Such amount or benefit is obtained in a subsequent ...