| Case ID |
14eb562a-8509-4c72-bbb5-be10dc940a9d |
| Body |
View case body. Login to View |
| Case Number |
|
| Decision Date |
|
| Hearing Date |
|
| Decision |
The court directed the Tribunal to state the case and refer two questions of law concerning the deletion of an addition made by the Income-tax Officer under section 41(1) of the Income-tax Act. The first question examined whether the Tribunal was correct in law in deleting the addition of Rs. 68,421 made by the Income-tax Officer. The second question considered whether the recovery of sums due from the assessee by a trade creditor, through a broker who wrote off dues in his books, amounted to cessation of liability within the purview of section 41(1). The court found both questions to be matters of law and required clarification from the Tribunal, ultimately stating there would be no order as to costs. |
| Summary |
This case revolves around the interpretation of section 41(1) of the Income-tax Act, 1961, which addresses the remission or cessation of trading liabilities. The Delhi High Court examined whether the Income-tax Appellate Tribunal's decision to delete an addition made by the Income-tax Officer was legally sound. Specifically, the case involved a trade creditor recovering sums owed by the assessee through a broker who had written off the dues. This raised significant questions about the cessation of liability, a key aspect under section 41(1). The judges, B.N. Kirpal and C.L. Chaudhry, highlighted the need for clarity on these legal issues. The decision is pivotal for understanding the taxation implications of debt recovery and liability cessation in trading contexts. It underscores the importance of legal representation in complex tax matters, making it a relevant case for tax lawyers and advocates. Keywords such as 'Income-tax Act', 'trading liability', 'legal interpretation', and 'tax law' are essential for SEO optimization in legal discussions surrounding this case. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
B.N. Kirpal,
C.L. Chaudhry
|
| Lawyers |
Rajendra,
D.C. Taneja,
Vikram Kapur
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Ram Kishan Mal Ladha Singh
|
| Citations |
1990 SLD 1944,
(1990) 184 ITR 297
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
41(1),
256
|