https://www.taxtmi.com/caselaws?id=36095 The High Court held that the sales tax refund of Rs. 76,578 claimed by the assessee was not taxable under section 41(1) of the Income-tax Act, 1961. The court emphasized that since no allowance or deduction was made in previous years, section 41(1) could not be applied to tax the refund in the subsequent year. The court rejected the department's argument and ruled in favor of the assessee, stating that the refund was not taxable based on the facts found by the Tribunal. en-us Tue, 16 Sep 1980 00:00:00 +0530 Tue, 23 Jul 2013 11:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36095 The High Court held that the sales tax refund of Rs. 76,578 claimed by the assessee was not taxable under section 41(1) of the Income-tax Act, 1961. The court emphasized that since no allowance or deduction was made in previous years, section 41(1) could not be applied to tax the refund in the subsequent year. The court rejected the department's argument and ruled in favor of the assessee, stating that the refund was not taxable based on the facts found by the Tribunal. Case-Laws Income Tax Tue, 16 Sep 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36095