TMI Blog1973 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... orresponding account year is from November 1, 1954, to October 23, 1955. The assessee is a registered firm consisting of four brothers and their mother. The business was formerly being carried on by a joint Hindu family, but subsequently a partition took place and the business was converted into a partnership. The partnership firm consisted of Motilal and his four sons, who are still partners in the firm, along with their mother after Motilal's death. Certain amounts stood in the books of the firm in the name of Motilal, and interest was credited by the firm to this account, but the interest credited was disallowed till the assessment year 1954-55. Moti Lal died on February 8, 1952, and, thereafter, ceased to be a partner. Subsequent to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and, subsequently during any previous year, the assessee has received, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or has obtained some benefit in respect of such trading liability by way of remission or cessation there of the amount received by him or the value of the benefit accruing to him shall be deemed to be profits and gains of business, profession or vocation and to have accrued or arisen during the previous year." A perusal of this sub-section shows that before resort can be had to the section, it must be shown that an allowance or deduction has been made in the assessment in respect of any loss, expenditure or trading liability and subsequently the assessee has received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the assessee's husband relating to the period January 26, 1950, to March 31, 1951. Messrs. Mohanlal Hargovindas had subsequently filed an appeal against their assessment made under the Sales Tax Act and this appeal was allowed, 24,341 was remitted. Consequently, Messrs. Mohanlal Hargovindas refunded that amount to the assessee by means of a draft dated October 31, 1961. The Income-tax Officer, sought to include this amount under the provisions of section 41(1) of the Income-tax Act, 1961, which is in pari materia to section 10(2A) of the Indian Income-tax Act, 1922. It was held by the Supreme Court that the successor in business or a legal representative of the assessee to whom an allowance had been granted, is not liable to tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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