1973 (7) TMI 39

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....t case is 1956-57 and the corresponding account year is from November 1, 1954, to October 23, 1955. The assessee is a registered firm consisting of four brothers and their mother. The business was formerly being carried on by a joint Hindu family, but subsequently a partition took place and the business was converted into a partnership. The partnership firm consisted of Motilal and his four sons, who are still partners in the firm, along with their mother after Motilal's death. Certain amounts stood in the books of the firm in the name of Motilal, and interest was credited by the firm to this account, but the interest credited was disallowed till the assessment year 1954-55. Moti Lal died on February 8, 1952, and, thereafter, ceased to be a....

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....ility incurred by the assessee and, subsequently during any previous year, the assessee has received, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or has obtained some benefit in respect of such trading liability by way of remission or cessation there of the amount received by him or the value of the benefit accruing to him shall be deemed to be profits and gains of business, profession or vocation and to have accrued or arisen during the previous year." A perusal of this sub-section shows that before resort can be had to the section, it must be shown that an allowance or deduction has been made in the assessment in respect of any loss, expenditure or trading liability and subsequen....