Any amount received or benefit derived in respect of expenditure incurred or loss or trading liability allowed as deduction shall be deemed as income in the year in which the amount is received or benefit is accrued.
Reference:
As Per Section 59, of the Income Tax Act, 1961-
The provisions of sub-section (1) of section 41 shall apply, so far as may be, in computing the income of an assessee under section 56, as they apply in computing the income of an assessee under the head “Profits and gains of business or profession”.
As Per Sub-section (1) of Section 41, of the Income Tax Act, 1961-
Where an allowance or deduction has been made in the assessment for any year in respect of loss, expenditure or trading liability incurred by the assessee and subsequently during any previous year.
[Explanation-1 to sub-section (1) of Section 41, of the Income Tax Act, 1961-
For the purposes of this sub-section, the expression “loss or expenditure or some benefit in respect of any such trading liability by way of remission or cessation thereof” shall include the remission or cessation of any liability by a unilateral act of that sub-section by way of writing off such liability in his accounts.]