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2012 (2) TMI 81 - DELHI HIGH COURTUnclaimed credit balances written back - Amount represented small credit balances out of advance received from supplier which could not be adjusted - Amount written back as period of limitation had expired - Salary, wages & Bonus amounting to Rs 59,088 - Explanation 1 to Section 41(1) writing of liability will amount to cessation of liability thus taxable however explanation was inserted from 1st April 97 and have prospective effect and not apply to A/Y 95-96. For Supplier Credit balance - same reasoning is applicable for the year under consideration. Uncashed Cheques amounting to Rs 1,97,758 - there was no claim for deduction in any of the earlier years and, therefore, the amount cannot be added under Section 41(1) of the Act. Unclaimed Dividend - Dividend is appropriation - If it is not allowable as deduction excess cannot be taxed. Provision for doubtful debts - Provision was never allowed as deduction thus cannot be taxed under 41(1)
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