As per sec 41(1) if deduction claimed of any trading liability and subsequently received any amount on that it will be treated profit from business

Last updated: 03 April 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Section 41(1) of the Act, as it existed at the relevant time, was as under:- “41. Profits chargeable to tax.—(1) 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 the assessee has obtained, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or some benefit in respect of such trading liability by way of remission or cessation thereof, the amount obtained by him or the value of benefit accruing to him, shall be deemed to be profits and gains of business or profession and accordingly chargeable to income tax as the income of that previous year, whether the business or profession in respect of which the allowance or deduction has been made is in existence in that year or not.”

Citation :
COMMISSIONER OF INCOME TAX DEL ..... Appellant Through Mr. Deepak Chopra, Sr. Standing Counsel & Mr. Harpreet Singh Ajmani, Advocate. Versus M/S BHARATPUR NUTRITIONAL PRODUCTS LIMITED ..... Respondent Through Mr. R.N. Mehta, Advocate.

Daily Limit Reached