https://www.taxtmi.com/caselaws?id=13968 A reduction in corporation tax liability following a later settlement was held not taxable as income where the liability had been allowed in earlier years under the law then in force. The Court held that, absent a retrospective amendment, the relief could not be assessed under the Income-tax Act, 1961, including section 41(1), or brought to tax as income from house property or under the head "Other sources". The assessee's entitlement under the law existing when the liability accrued could not be displaced by a later amendment. The amount was therefore not taxable as income, and the issue was answered in favour of the assessee. en-us Fri, 16 Mar 2001 00:00:00 +0530 Mon, 06 Jul 2009 16:12:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13968 A reduction in corporation tax liability following a later settlement was held not taxable as income where the liability had been allowed in earlier years under the law then in force. The Court held that, absent a retrospective amendment, the relief could not be assessed under the Income-tax Act, 1961, including section 41(1), or brought to tax as income from house property or under the head "Other sources". The assessee's entitlement under the law existing when the liability accrued could not be displaced by a later amendment. The amount was therefore not taxable as income, and the issue was answered in favour of the assessee. Case-Laws Income Tax Fri, 16 Mar 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13968