Mere difference in Balance Sheet of Assessee & Creditor cannot be treated as cessation of liability

Nandini V. Kalgutkar Vs ITO (ITAT Bangalore) On perusal of section 41 of the IT Act, it is evident that it is a sine qua non that there should be an allowance or deduction claimed by the assessee in any assessment in respect of loss, expenditure or trading liability incurred by the assessee. Then, subsequently, during any previous year, if the creditor remits or waives any such liability, then the assessee is liable to pay tax u/s. 4 1(1) of the IT Act. The objective behind this section is simple. It is made to ensure that the assessee does not get away with a double benefit once by way of ded...