https://www.taxtmi.com/caselaws?id=28204 Receipts from a discontinued railway-related business were treated as not chargeable as business profits because the business had ceased long before the relevant assessment year and the payment arose from settlement of old claims. Taxability under section 41(1) also failed because that provision requires a prior actual allowance or deduction for loss, expenditure, or trading liability, and none had been granted on the record. The applicable principle was that a receipt cannot be taxed under section 41(1) without the statutory precondition of an earlier deduction, and a post-cessation receipt is not business income absent an applicable charging provision. en-us Mon, 22 Nov 1982 00:00:00 +0530 Fri, 19 Feb 2010 16:42:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28204 Receipts from a discontinued railway-related business were treated as not chargeable as business profits because the business had ceased long before the relevant assessment year and the payment arose from settlement of old claims. Taxability under section 41(1) also failed because that provision requires a prior actual allowance or deduction for loss, expenditure, or trading liability, and none had been granted on the record. The applicable principle was that a receipt cannot be taxed under section 41(1) without the statutory precondition of an earlier deduction, and a post-cessation receipt is not business income absent an applicable charging provision. Case-Laws Income Tax Mon, 22 Nov 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28204