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2014 (1) TMI 1268 - AT - Income TaxGains arising u/s 41(1) of the Act – No amount actually received by the assessee – Held that:- The order of Hon'ble Tribunal in the case of assessee dated 20-12- 2007 is followed which was passed by it subsequent to the order of Tribunal in the case of M/s Hemraj Trading Company - the directions given by the Tribunal to the assessing officer were very clear that only if the amount has been received by the partners of the firm, the same can be taxed in the hands of the assessee - Before assessing officer partners have field affidavits mentioning that no such amount has been received by them which were accepted by assessing officer - Even then he has gone ahead with taxing this amount in the hands of the assessee - the addition made by AO and sustained by Ld. CIT(A) deserves to be deleted - CIT(A) has mentioned that though the sale tax authorities had initially issued sales tax refund in the name of M/s Hemraj Trading Company but the revisionary authorities realized the mistake and demanded back the refund along with the interest from the recipient - The matter was under litigation till the time Ld. CIT(A) passed his order - Therefore in case in between sales tax refund amount is received by the partners, assessing officer will be free to proceed as per law – Decided in favour of Assessee.
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