PCIT v. Adani Agro (P) Ltd. (2020) 273 Taxman 430 (Guj.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding for more than three years-Addition cannot be made as cessation of liability.

Dismissing the appeal of the revenue merely because liability had remained outstanding for more than three years and same was not written back in profit and loss account, application of provisions of section 41(1) could not be made to consider such liability as income of year under consideration without there being any remission or cessation of liability.  (AY.  2012-13)