https://www.taxtmi.com/caselaws?id=39503 Section 41(1) of the Income-tax Act applies only where a deduction has been allowed and the assessee later obtains a benefit by remission or cessation of the related liability. A refund of purchase tax received after retrospective validating legislation did not satisfy that test, because the Punjab General Sales Tax (Amendment and Validation) Act, 1967 validated the levy and preserved the underlying tax liability as always lawful. On that footing, the refunded amount could not be treated as deemed business income under section 41(1), as there was no remission or cessation of liability. en-us Tue, 03 Dec 1974 00:00:00 +0530 Fri, 16 Apr 2010 17:58:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39503 Section 41(1) of the Income-tax Act applies only where a deduction has been allowed and the assessee later obtains a benefit by remission or cessation of the related liability. A refund of purchase tax received after retrospective validating legislation did not satisfy that test, because the Punjab General Sales Tax (Amendment and Validation) Act, 1967 validated the levy and preserved the underlying tax liability as always lawful. On that footing, the refunded amount could not be treated as deemed business income under section 41(1), as there was no remission or cessation of liability. Case-Laws Income Tax Tue, 03 Dec 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39503