Dismissing the appeal of the revenue the Tribunal held that ; Benefit from Pre-payment of deferred Sales Tax Liability cannot be assesses u/s 41(1).Board Circular No. 496 dated September 25, 1987 stated that statutory liability was to be treated as paid in case the State Government made an amendment that sales tax deferred under the scheme was to be treated as actually paid, therefore the order of the Commissioner (Appeals) for the assessment year 2009-10 was upheld. ( AY. 2009 -10)
ACIT v. Chambal Fertilisers And Chemicals Limited. (2018) 61 ITR 33 (Jaipur) (Trib)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Benefit from Pre-payment of deferred Sales Tax Liability cannot be assessed u/s 41(1).