Assessee took an unsecured loan from  during financial year 2001-02. During same year, an interest of certain amount was debited on which TDS was deducted and net credit balance stood at certain amount which was being carried forward year-to-year-During relevant assessment year, Assessing Officer noting that alleged sum of outstanding loan had remained unpaid from financial year 2001-02 onwards till relevant assessment year 2011-12 invoked provisions of section 41(1) and added same to income of assessee.  Tribunal held that since outstanding principal loan amount was never claimed as trading liability, Assessing Officer was not justified to invoke provisions of section 41(1) for such loan amount. However, only interest amount which was claimed as expenditure in one year is  liable to be added to income of assessee. (AY. 2011-12)