https://www.taxtmi.com/caselaws?id=38246 Under section 41(2) of the Income-tax Act, 1961, the legal fiction that the business continues operates only to tax the balancing charge when moneys become due, and cannot be extended to allow post-cessation establishment expenses; such deduction was therefore not allowable. Solatium received on compulsory acquisition was treated as part of the consideration for the transfer of the assets, not as a separate casual or capital receipt. The balancing charge became taxable only when the purchase price was finally ascertained and due, so assessment in the later year was correct. en-us Fri, 05 Aug 1977 00:00:00 +0530 Mon, 05 Apr 2010 11:36:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38246 Under section 41(2) of the Income-tax Act, 1961, the legal fiction that the business continues operates only to tax the balancing charge when moneys become due, and cannot be extended to allow post-cessation establishment expenses; such deduction was therefore not allowable. Solatium received on compulsory acquisition was treated as part of the consideration for the transfer of the assets, not as a separate casual or capital receipt. The balancing charge became taxable only when the purchase price was finally ascertained and due, so assessment in the later year was correct. Case-Laws Income Tax Fri, 05 Aug 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38246