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TMI Blog2011 (2) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 as such the accounting period for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 partly allowed on November 6, 1992. The Commissioner of Income-tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal. 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 after holding that in the year under consideration the liability ceased to exist ?" The decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 been amended since then. It is enforced with effect from April 1, 1993, by the Finance Act, 1992. Now, the word "assessee" ..... X X X X Extracts X X X X X X X X Extracts X X X X
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