It has been held by the Appellate Tribunal that the waiver of loan was not hit by section 41(1). If the amount is received in the course of trading transactions even though it is not taxable in the year of receipt, as being of capital character, the amount changes its character when the amount becomes the assessee’s own money because of limitation or by any other statutory or contractual right. Where the assessee received deposits in the course of trading transactions, the amount of such credit balances, which were barred by limitation and which were returned by the assessee to the profit and loss account, were to be assessed as the assessee’s income. (AY. 2015-16)