9911796707
TMI Blog1988 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... section 256(1) of the Income-tax Act, 1961, (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that a sum of Rs. 55,440 was not assessable under section 41(1) of the Act in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal held that there was no justification for the addition of Rs. 55,440 on account of salary written off. In this view of the matter, the appeal preferred by the assessee to that extent was allowed. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question has been referred to this court for its opinion. To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or profession in respect of which the allowance or deduction has been made is in existence in that year or not." From a perusal of the aforesaid provision, it is clear that the following conditions must be fulfilled before section 41 (1) of the Act could be held to be applicable : (i) In the assessment of an assessee, an allowance or deduction has been made in respect of any loss, expenditure o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y High Court held that the transfer of an entry was a unilateral act and did not bring about the cessation of the liability of the debtor. On behalf of the Revenue, reliance was placed on the decision of the Allahabad High Court in Indian Motor Transport Co. v. CIT [1978] 114 ITR 677 but, with respect, that decision, in our opinion, does not take into account the fact that there can be a "cessatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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