https://www.taxtmi.com/caselaws?id=13834 The High Court held that the amount collected by the assessee as sales tax, kept in a separate account, and later transferred to the profit and loss account due to the cessation of liability, was subject to income tax under section 41(1) for the assessment year 1970-71. The court applied the principle that if a trading liability ceases and an amount is obtained, it is deemed as profits and gains of business. The court relied on precedents and distinguished the case from others, ruling in favor of the Revenue and against the assessee. en-us Thu, 19 Jul 2001 00:00:00 +0530 Fri, 03 Jul 2009 11:48:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13834 The High Court held that the amount collected by the assessee as sales tax, kept in a separate account, and later transferred to the profit and loss account due to the cessation of liability, was subject to income tax under section 41(1) for the assessment year 1970-71. The court applied the principle that if a trading liability ceases and an amount is obtained, it is deemed as profits and gains of business. The court relied on precedents and distinguished the case from others, ruling in favor of the Revenue and against the assessee. Case-Laws Income Tax Thu, 19 Jul 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13834