Assessee hived off its hire purchase and leasing business to a special purpose vehicle (SPV) and assigned corresponding receivables together with connected bank liabilities to SPV at book value under tripartite agreement which was amongst assessee, SPV and consortium of twelve banks who had advanced finances to assessee.  Total receivables as per accounts were Rs. 93.45 crores; whereas bank liabilities were Rs. 89.86 crores. Assessing Officer held that  bank dues of Rs. 89.05 crores were crystalized at Rs. 43 crores held that there was remission of liabilities to extent of Rs. 46.05 crores, i.e., Rs. 89.05 crores minus Rs. 43 crores and added said amount to income of assessee by applying provisions of section 41(1). Held that  though bank liabilities were crystalized at Rs. 43 crores, yet SVP was obliged to repay any amount received by it over and above Rs. 43 crores and, therefore, it would not be correct to say that bank liabilities were ultimately settled at Rs. 43 crores and balance amount was waived off  therefore provisions of section 41(1) were not applicable to the facts of the appellant. Bank claimed it as bad debts, since there was no outstanding balance of bank in books of assessee in relevant assessment year, impugned addition deserved to be deleted. (AY. 2009-10)