https://www.taxtmi.com/caselaws?id=58386 Section 41(1) does not apply to customer deposits and current liabilities taken over on nationalisation unless an earlier deduction or allowance was granted and the assessee subsequently obtains a benefit through remission or cessation. Where the liabilities remain payable by the Central Government, those conditions are not met and no addition arises. Section 41(2) also does not permit a balancing charge where an entire undertaking is compulsorily acquired as a going concern for a lump-sum price without asset-wise valuation. In that situation, consideration for individual depreciable assets cannot be computed, and capital gains principles, rather than a balancing charge, apply. en-us Fri, 29 Apr 1988 00:00:00 +0530 Sat, 18 Dec 2010 17:20:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58386 Section 41(1) does not apply to customer deposits and current liabilities taken over on nationalisation unless an earlier deduction or allowance was granted and the assessee subsequently obtains a benefit through remission or cessation. Where the liabilities remain payable by the Central Government, those conditions are not met and no addition arises. Section 41(2) also does not permit a balancing charge where an entire undertaking is compulsorily acquired as a going concern for a lump-sum price without asset-wise valuation. In that situation, consideration for individual depreciable assets cannot be computed, and capital gains principles, rather than a balancing charge, apply. Case-Laws Income Tax Fri, 29 Apr 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58386