1982 (7) TMI 8

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... discharging the outstanding liability by the assessee in the assessment years 1957-58, 1965-66 and 1966-67, the total amount coming to Rs. 16,000 as against Rs. 51,130 outstanding at the end of S.Y. 2010. By release deed dated October 4, 1965, Bapuji Narayan & Co. accepted Rs. I 6,000 " in full and final settlement of the balance debt of Rs. 53,265 in view of the bad financial position of the second party "-Rs. 53,265 was the balance shown as outstanding in the account of the assessee with Bapuji Narayan & Co. With reference to the assessment year, the release deed was made in the assessment year 1966-67, i.e., S.Y 2021. The ITO took the view that the remission for the purposes of s. 41(1) of the Income-tax Act, 1961, took place in the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0 (relevant to the assessment year 1955-56) and not Samvat year 2021 (relevant to the assessment year 1966-67) ? (2) Whether, on the facts and in the circumstances of the case, the amount of Rs. 39,469 which represented the remission obtained by the assessee in respect of its trade debt as per the release deed. dated October 4, 1965, was includible under section 41(1) of the Income-tax Act, 1961, in computation of its assessable income for the assessment year 1966-67 ? " The answer to the second question will depend on what view we take on the first question. Mr. Sajnani appearing on behalf of the Revenue has contended that the Tribunal has wholly erred in reading the release deed to say that the remission was given by Bapuji Narayan & ....