Unclaimed creditors to be added to Income u/s 41, even if the same is not written back in Income statement

M/s. West Asia Exports & Imports Vs. ACIT (Madras High Court)

We know that Sec 41(1) of Income Tax Act 1961, where there is cessation of any trading liability then the benefit accruing on account of cessation of such liability will be deemed to profits and gains of business or profession whether or not such business or profession is in existence.

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