Cessation of liability

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ashish alexander (Querist)
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03 March 2014 Under section 41(1) the cessation of liability: what shall be the treatment of the liability.
whether it shall be income u/h B/P or treated as total income ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 March 2014 it is added to income from business/profession.

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ashish alexander

ashish alexander (Querist)
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03 March 2014 then shall it be shown in the books of accounts (P&L)?

ashish alexander

ashish alexander (Querist)
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03 March 2014 or directly added to income u/h B/P

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 March 2014 it needs to be shown in "BP" sheet - Deemed Income under section 41.

ashish alexander

ashish alexander (Querist)
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04 March 2014 What is the concept of a time barred debt for cessation of liability ? [sec 41(1)]

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 March 2014 well time bar comes from the Statue of Limitations. to have a better understanding, refer https://www.lexology.com/library/detail.aspx?g=4cc4d6ad-d957-460b-9655-458c1c04a438

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