Section 41(1) - Recovery of expenditure & Remission and cessation of trading liability

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or expenditure, then the amount so received shall be deemed to be the income under the head PGBP of the previous year in which such amount is received. This shall apply even if the business is not in existence. Where any deduction has been allowed in respect of a trading liability and subsequently there is a remission or cessation of the trading liability, then the amount of trading liability so .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o companies or on account of the constitution of the new firm or the business is continued by some other persons when the assessee ceases to carry on the business, then the person succeeding will be chargeable to tax on any amount received in relation to which deduction or allowance has been made. UNILATERAL WRITING OFF OF TRADING LIABILITY It is taxable even if it is a unilateral act and the othe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X