Tax remission applies only to the same assessee who earlier claimed the deduction; successor receipt was not taxable here.

Section 10(2A) of the Indian Income-tax Act, 1922 applies only when the same assessee who earlier obtained a deduction or allowance later receives back the amount or a benefit in respect of the same loss, expenditure or trading liability. On the facts stated, the earlier deduction had been allowed to the firm, while the amount was received by the deceased partner's heirs by succession, not by the firm in its own hands. The analogous principle under section 41(1) of the 1961 Act likewise does not tax a successor in business or legal representative on such receipt. The amount was therefore not assessable in the firm's hands.

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Issues: Whether the amount credited to the deceased partner's account was assessable in the firm's hands under section 10(2A) of the Indian Income-tax Act, 1922.

Analysis: Section 10(2A) applies only where an allowance or deduction has earlier been made in respect of a loss, expenditure, or trading liability, and the same assessee who obtained that allowance subsequently receives back the amount or obtains a benefit in respect of that liability. Here, the earlier deduction had been allowed to the firm, while the amount was received by the heirs of the deceased partner by virtue of succession, not by the same assessee in respect of the same liability. The analogous principle under section 41(1) of the Income-tax Act, 1961 supports the view that a successor in business or legal representative is not taxed under that provision on such receipt.

Conclusion: The amount was not assessable under section 10(2A) of the Indian Income-tax Act, 1922, and the answer to the referred question was in the negative, in favour of the assessee.

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