https://www.taxtmi.com/caselaws?id=26494 The High Court of Madhya Pradesh ruled in favor of the assessee in a case involving the interpretation of section 41(1) of the Income-tax Act, 1961. The court held that for section 41(1) to apply, the entity benefiting from an allowance or deduction must be the same entity held liable later. As the assessee's status changed from an individual to a Hindu undivided family between assessment years, the court concluded that the Tribunal erred in treating the earlier loss as assessable profit. The references were answered in the negative, favoring the assessee, with no costs awarded. en-us Thu, 13 Mar 1986 00:00:00 +0530 Fri, 05 Feb 2010 13:35:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26494 The High Court of Madhya Pradesh ruled in favor of the assessee in a case involving the interpretation of section 41(1) of the Income-tax Act, 1961. The court held that for section 41(1) to apply, the entity benefiting from an allowance or deduction must be the same entity held liable later. As the assessee's status changed from an individual to a Hindu undivided family between assessment years, the court concluded that the Tribunal erred in treating the earlier loss as assessable profit. The references were answered in the negative, favoring the assessee, with no costs awarded. Case-Laws Income Tax Thu, 13 Mar 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26494