https://www.taxtmi.com/caselaws?id=8516 Section 10(2A) of the Indian Income-tax Act, 1922 applies only where an earlier assessment has actually allowed or deducted a loss, expenditure or trading liability; a merely notional factor used in estimating profits is insufficient. On that basis, remission of lease consideration and royalty of Rs. 50,000 and Rs. 24,000 was not taxable as deemed profit because no actual deduction had been made in assessment. The amount of Rs. 5,000 was taxable, as the assessee failed to show it was only a reversal of a wrong entry. Only Rs. 5,000 out of the total remission was chargeable as deemed business profit. en-us Fri, 12 Nov 1971 00:00:00 +0530 Mon, 27 Apr 2009 18:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8516 Section 10(2A) of the Indian Income-tax Act, 1922 applies only where an earlier assessment has actually allowed or deducted a loss, expenditure or trading liability; a merely notional factor used in estimating profits is insufficient. On that basis, remission of lease consideration and royalty of Rs. 50,000 and Rs. 24,000 was not taxable as deemed profit because no actual deduction had been made in assessment. The amount of Rs. 5,000 was taxable, as the assessee failed to show it was only a reversal of a wrong entry. Only Rs. 5,000 out of the total remission was chargeable as deemed business profit. Case-Laws Income Tax Fri, 12 Nov 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8516