https://www.taxtmi.com/caselaws?id=10605 The High Court of MADRAS examined whether an amount written off by the sister concern of the assessee should be treated as income in the hands of the assessee under section 41(1) of the Income-tax Act. Relying on legal precedents, the court emphasized the necessity of proving an allowed deduction of liability in the earlier assessment to add the amount as deemed profits under section 41(1). As the appellant demonstrated no such deduction or allowance, the court set aside the Tribunal's order, remanding the matter for a fresh decision ensuring compliance with section 41(1) requirements. The appeal was allowed, overturning the Tribunal's order and directing a new decision. en-us Mon, 11 Jul 2005 00:00:00 +0530 Mon, 20 Jul 2009 10:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10605 The High Court of MADRAS examined whether an amount written off by the sister concern of the assessee should be treated as income in the hands of the assessee under section 41(1) of the Income-tax Act. Relying on legal precedents, the court emphasized the necessity of proving an allowed deduction of liability in the earlier assessment to add the amount as deemed profits under section 41(1). As the appellant demonstrated no such deduction or allowance, the court set aside the Tribunal's order, remanding the matter for a fresh decision ensuring compliance with section 41(1) requirements. The appeal was allowed, overturning the Tribunal's order and directing a new decision. Case-Laws Income Tax Mon, 11 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10605