Assessing Officer brought principal amount of loan waived off to tax under section 41(1) of the Act. Commissioner (Appeals) deleted the addition. On appeal by the revenue the Tribunal held that assessee never claimed principal amount of loan as deductible expenditure in earlier assessment years, benefit received in respect of same could not be brought to tax. (AY. 2013-14)
ITO v. Sri Vasavi Polymers (P.) Ltd. (2020) 183 ITD 586 (Vishakha)(Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Waiver of principal amount of loan-Not chargeable to tax.