Held that where the assessee has offered the income by applying the provision of section 44BB of the Act than once again the remission of liability cannot be taxed u/s 41 (1) of the Act. However if remission of income tax liability pertained to earlier years for which assessee was claiming set-off of losses by offering its income based on its regular accounts, it would be chargeable to tax in instant year under section 41(1).Matter remanded. (AY. 2011-12, 2013-14)
Dolphin Drilling Ltd. v. DCIT (IT) (2021) 191 ITD 181 / 204 DTR 209 / 212 TTJ 662 (Dehradun)(Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Presumptive taxation-Remission of income tax liability of employees borne by assessee pertaining to earlier years-Not chargeable to tax-Claimed deduction and allowed-The income would be chargeable to tax-Matter remanded. [S.44BB(2)]