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TMI Blog2014 (2) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... reating the closing balance as income u/s 41(1) of the Act - the amount in respect of these four parties cannot be considered as income u/s 41(1) of the Act - We, therefore, upheld the impugned order on this issue – Decided against Revenue. - ITA No.4649/Mum/2012, CO No.154/Mum/2013 - - - Dated:- 21-8-2013 - Shri R. S. Syal, AM And Shri Sanjay Garg, JM,JJ. For the Petitioner : Shri C. P. Pathak For the Respondent : Shri Sanjiv Shah ORDER Per R. S. Syal (AM) :- This appeal by the Revenue and cross objection by the assessee arise out of the order passed by the Commissioner of Income-tax (Appeals) on 30.04.2012 in relation to the assessment year 2009- 2010. 2. The only issue raised through various grounds is against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,800 2. Samidha Engineering 1,77,162 Nil 1,67,162 3. Universal Enterprises 8,52,800 Nil 8,52,800 4. Argass Chemicals 25,67,269 2,58,544 26,54,990 3. We have heard the rival submissions and perused the relevant material on record. Section 41(1) provides that where an allowance or deduction has been made in the assessment for any year in respect of loss or trading liability incurred by the assessee and subsequently during any previous year the assessee obtains whether in cash or in any other manner remission or cessations thereof, such amount shall be considered as profit chargeable to tax. The essence of section 41(1) is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s account for the financial year 2009-2010 is available on page 38 of the paper book showing nil balance as at the end of the subsequent year. By no stretch of imagination, this amount can be considered as income u/s 41(1) of the Act for the year relevant to the assessment year under consideration. 4.2 Similar is the position regarding Universal Enterprises. It had opening balance of Rs.8.52 lakh. Though no amount was paid during the year but in subsequent year the entire amount has been paid. Copy of account of this party for the financial year 2009-2010 is available on pages 40 and 41 of the paper book showing nil balance. We cannot consider the outstanding amount at the end of the year as income chargeable to tax u/s 41(1). 4.3 The l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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