2010 (10) TMI 121 - HC - Income Tax

Ceased of liability deemed income section 41 Held that - Section 41 of the Act may apply in the assessment year in which the liability was created or is ceased but would not apply for the present assessment year namely 2004-05 when the liability was neither created nor ceased

Summary

The High Court of Allahabad dismissed the appeal related to the assessment year 2004-05. The court upheld the decision of the CIT(A) that liabilities of M/s Nekon Pharma Chemical and M/s SEICI should not be added as income under Section 41 of the Income Tax Act as they were neither created nor ceased in that assessment year. The Tribunal's decision was also upheld, and the appeal was dismissed.