Delhi HC explains what constitute remission or cessation of a trading liability

CIT Vs Vardhman Overseas Ltd. (Delhi High Court)

The principle behind section 41 of Income Tax Act, 1961 is simple. It is a provision intended to ensure that the assessee does not get away with a double benefit once by way of deduction in an earlier assessment year and again by not being taxed on the benefit received by him in a later year with reference to the liability earlier allowed as a deduction. In CIT, Mysore v. Lakshmamma, (1964) 52 ITR 789 Hegde, J., (as he then was) speaking for

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