Section 41(b)

(b) the successor in business has obtained, whether in cash or in any other manner whatsoever, any amount in respect of which loss or expenditure was incurred by the first -mentioned person or some benefit in respect of the trading liability referred to in clause ( a) by way of remission or cessation thereof, the amount obtained by the successor in business or the value of benefit accruing to the successor in business shall b e deemed to be profits and gains of the business or profession, and accordingly chargeable to income -tax as the income of that previous year. 4[Explanation 1.-For the purposes of this sub -section, the expression “loss or expenditure or some benefit in resp ect of any such trading liability by way of remission or cessation thereof” shall include the remission or cessation of any liability by a unilateral act by the first mentioned person under clause ( a) or the successor in business under clause ( b) of that s ub-section by way of writing off such liability in his accounts.] Explanation 5[2]-For the purposes of this sub -section, “successor in business” means, -