2011 (2) TMI 240

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....ent year (AY) 1986-87 in respect of M/s. Uttaranchal Transport, Kanpur (the assessee) under the Income-tax Act, 1961 (the Act). The facts   2. The assessee was formed in the assessment year 1986-87 and succeeded to the transport business from another firm.   3. The accounting period for the assessee was from July to the end of June next year. It was closed on March 8, 1986 and a....

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....€¢ The assessee had obtained a benefit in respect of such liability by way of remission/cessation.   7. In view of the aforesaid finding the Assessing Officer added the entire remaining liability at the end of the assessment year 1986-87 of Rs.23,20,769 as income under section 41(1) of the Act. 8. The assessee filed an appeal before the Commissioner of Income-tax (Appeals). It was p....

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....ax Appellate Tribunal, Lucknow Bench, Lucknow (the Tribunal) on July 31, 2001. Hence, the present appeal. Substantial question of law   11. This appeal was admitted on the following substantial question No. 2 of law :   "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in dismissing the Department's appeal even afte....

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....decision was approved by the Supreme Court (sic) in CIT v. B. R. Chawla [2001] 248 ITR 205 (Delhi). The court observed that (headnote) :   "The amount in respect of which remission or cessation takes place has to be assessed in the hands of the assessee who was earlier granted an allowance or deduction and none else." 15. It is relevant to point out that section 41(1) of the Act has bee....