2013 (6) TMI 130

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....t : Mr Piyush Kaushik, Adv JUDGEMENT:- This appeal by the revenue is against the order dated 20.04.2012 passed by the Income Tax Appellate Tribunal, New Delhi, in ITA No. 217/Del/2011 relating to the assessment year 2007-08. The only issue which is raised by the revenue is with regard to the deletion of the sum of Rs. 48,03,481/- which had been added by the assessing officer under section 41....

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....on sense demands that the amount should be treated as income of the assessee [7 ITR 316 (CA)].The same principle has also been approved by Hon?ble Supreme Court by holding that though the deposits received during the course of business were of the capital nature but when deposits are not claimed or claim of depositor is barred by limitation, such money is to be treated as income of assessee [CIT v....

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.... liability was of a capital nature and it had not yet been written off to the profit and loss account. Consequently, the Tribunal concluded that the findings of the assessing officer were misplaced inasmuch as the said amount could not be treated as income of the assessee unless and until it had been written off to the credit of the profit and loss account, wholly or partly, and, therefore, it cou....

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....correct manner. The very first condition for invoking section 41(1) is that an allowance or deduction ought to have been made in the assessment for any year in respect of any loss, expenditure or trading liability incurred by the assessee. In the present case it is an admitted position that no allowance or deduction had been made in the assessment of the respondent/assessee in any earlier year. Co....