Section 41(1) includes remission or cessation of any liability by a unilateral act

Section 41(1) of the Income Tax Act, 1961 (for short ‘the Act’) deals with the profits chargeable to tax in certain cases.

Recently in, DCIT. vs Sonodyne Television Co. Ltd. [I.T.A No. 330/Kol/2016 (Date of Decision: 31.01.2018)], one of the ground raised before ITAT Kolkata was that the CIT(A) had erred in law as well as on fact by deleting the liability written off for Rs. 59,75,631/-, when the assessee had failed to bring any evidence on record to prove the genuineness of the creditors.

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