Assessee borrowed loan of Rs. 12 crores from a company. Assessee assigned liability of repayment of loan to third party CPPL by making payment of Rs. 0.36 crores in terms of present value of future liability .Surplus of Rs. 11.64 crores resulting from assignment of loan liability in terms of present value of future liability was credited to profit & loss account under head income from other sources but while computing total income, said income was reduced from income on ground that such surplus represented capital receipt and, therefore, not taxable. AO  held that assignment of loan represented income under S. 41(1) or under S. 28(iv) of the Act . Tribunal held that since loan amount was utilized by assessee for purchase of shares and same was not used in relation to trading activity of assessee in its line of business, said surplus could not be treated as revenue receipt. Tribunal also held that surplus resulting from assignment of loan was not cessation or extinguishment of liability as loan was to be repaid by third party and, therefore, could not be brought to tax. (AY. 2000-01)