https://www.taxtmi.com/caselaws?id=56648 A sales tax refund received by a successor business is not taxable under section 41(1) unless the same assessee had earlier claimed the related deduction. A takeover of an ongoing business is succession, not discontinuance, so section 176(3A) does not apply; section 170(1)(b) is only a machinery provision and section 28(iv) does not cover a cash refund. For sales tax liability, section 43B allows deduction only on actual payment, so an unpaid liability is disallowable. Any alternative claim for deduction of tax actually paid requires verification to ensure there is no double allowance under the Explanation to section 43B. en-us Thu, 21 Nov 1985 00:00:00 +0530 Mon, 06 Dec 2010 11:09:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56648 A sales tax refund received by a successor business is not taxable under section 41(1) unless the same assessee had earlier claimed the related deduction. A takeover of an ongoing business is succession, not discontinuance, so section 176(3A) does not apply; section 170(1)(b) is only a machinery provision and section 28(iv) does not cover a cash refund. For sales tax liability, section 43B allows deduction only on actual payment, so an unpaid liability is disallowable. Any alternative claim for deduction of tax actually paid requires verification to ensure there is no double allowance under the Explanation to section 43B. Case-Laws Income Tax Thu, 21 Nov 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56648