Question before the High Court is “ Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that CIT(A) was correct in deleting Rs. 114.98 crores on account of remission of loan by Government of Maharashtra u/S. 41(1)/28(iv) without considering that the waiver of liability u/S. 41(1)/28(iv) is in character of stock-in-trade and certainly a trading liability?” Following the decision of Supreme Court in CIT v Mahindra A Mahindra Ltd ( 2018) 404 ITR 1 ( SC) ,High court decided the issue in favour of the assessee. ( ITA No 1685/Mum/2009 dt 6-12 2016 ( ITA No 1692 of 2017 dt 21-01 2020 ( AY.2003 -04)
PCIT v SICOM Ltd (2020) 274 Taxman 58 ( Bom) (HC)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Remission of loan by Government of Maharashtra cannot be assessed u/s 28(iv) or 41(1) of the Act – Order of Tribunal is affirmed [ S.28(iv ) ]