Dismissing the appeal of the revenue the Court held that ; Premature payment in terms of net present value (NPV) of same cannot be assessed as remission or cessation of liability .What assessee was required to pay after 12 years in 6 equal instalments was paid by assessee prematurely in terms of net present value (NPV) of same. (AY. 2003-04)
CIT v. Balkrishna Industries Ltd. (2018) 252 Taxman 375 / 300 CTR 209/ 161 DTR 185 (SC) Editorial: CIT v. Sulzer India Ltd ( 2014) 369 ITR 717/ ( 2015) 229 Taxman 264 ( Bom) (HC) is affirmed.
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Deferral sales tax Scheme -Premature payment in terms of net present value (NPV) of same cannot be assessed as remission or cessation of liability [ S.43B ]