Income Tax Act

M/S. Hunsur Plywood Works Ltd vs The Commissioner Of Income-Tax

Hon'ble Mr. Justice Suhas C.Sen Hon'ble Mr. Justice V.N. Khare Gopal Jain, Adv. for Mukul Mudgal, Adv. for the appealing party J. Ramamurthy, Sr.Adv., T.C.Sharma, N.K.Agarwal, B.K.Prasad, Advs. with him, for the Respondent J U D G M E N T, The taking after Judgment of the Court was conveyed: SEN, J.

Commissioner Of Income Tax v. Thirumalaiswamy Naidu & Sons.

In business, there are circumstances where a person might have acquired a liability, but later on, he need not have to spend it for one or other purpose. The Income Tax Act brings to tax such possibilities which are no more obligatory. The region brings into its ambit interest in cash or in-kind received by an individual by reduction or cessation of liability. The only demand is that the individual must have a deduction or allowance in his computation of income for the said liability in any previous years.