Dismissing the appeal, that the Tribunal was right in holding that the difference between the sales tax loan amount and the amount paid on net present value basis under the sales tax deferral scheme of the Maharashtra Government was not a remission of liability under section 41(1) and the difference between the amount paid on the net present value basis and the future liability could not be taxed as income under section 28(iv)( AY.2011-12)
CIT v .Wheels India Ltd. (2020) 427 ITR 150 (Mad) (HC)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Deferment of Sales tax under scheme of State Government — Amount paid on net present value basis —Difference between sales tax mount paid on net present value and future liability not business income [ S.28(iv) ]