COMMISSIONER OF INCOME TAX Vs. KAIMAL P K

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following three questions under Section 256(1) of the I.T. Act, 1961 :

(2.) WHETHER, having regard to the provisions of Section 41(4), it has been rightly held that the assessee in whose hands bad debt had been allowed and the person who had recovered the bad debts subsequently should be the same person so as to invoke the provisions of Section 41(4) ?

(3.) THUS, this provision deals with cases where an assessee obtains some benefit in cash or in kind in respect of a loss or expenditure or some benefit in respect of a trading liability, by way of remission, which was earlier allowed as deduction.