2001 (2) TMI 124

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..... as been referred for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (in short the "Act"), by the Income-tax Appellate Tribunal, Delhi Bench "D" (hereinafter referred to as "the Tribunal") : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the sum of Rs. 26,803 brought to tax by the Income-tax Officer under section 41( .....

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..... m of Rs. 8,382 was not debited to the profit and loss account in earlier years and could not, therefore, be taxed under section 41(1) of the Act. So far as the other amounts are concerned, it was observed that the amounts in question remained credited to the profit and loss account and it prima facie indicated that there was a remission of the liability. The assessee preferred an appeal before the .....

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..... spite of notice. Learned counsel for the Revenue submitted that the fact that the concerned party had made an entry in the profit and loss account is indicative of the fact that there was cessation of liability. The Tribunal according to him did not consider this relevant aspect. At this juncture it would be relevant to refer to a decision of the apex court in CIT v. T. V. Sundaram Iyengar and .....

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