Income Deemed to be chargeable to Tax Section 41(!) and Section 59

PGBP

Income from Other Sources

(Bad Debts etc Recovered)

If a person has claimed any deduction for loss/expenditure/trading liability

and later

Some amount or benefit received by way of remission/cessation there of

Then that amount or benefit will be deemed to be PGBP income

Amt Received by Successor:-

It doesn’t matter if received by assessee or successor

Even if amount/benefit received by successor of business, still amount will be taxable.

Here

Successor means

• In case of Amalgamation:  Amalgamated Company
• Demerger: Resulting Company
• One firm succeeded by Seond firm: The Second firm
• One person succeeded by Seond person: The Second Person

Section 59

The provisions of sub-section (1) of section 41 shall apply

in computing the income of an assessee under Income from Other Sources under section 56,

as they apply in computing the income of an assessee under the head "Profits and gains of business or profession".