Court held that as the assessee had not written of liability in books of account with respect to debtors and had carried forward and continued same liability addition cannot be made as cessation of liability ( AY.2009 10)
PCIT v. Babul Products (P.) Ltd. (2018) 257 Taxman 100 (Guj.)(HC) Editorial :Order in Babul Products (P.) Ltd v. ACIT ( 2017) 167 ITD 402 ( Ahd) (Trib) is affirmed .
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Liability is not written of in books of account – Addition cannot be made as cessation of liability .