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2012 (9) TMI 449 - HC - Income Tax
Taxation on cessation of liability to repay a loan - Held that:- As decided in Mahindra and Mahindra Ltd. v. CIT [2003 (1) TMI 71 - BOMBAY HIGH COURT] the cessation of liability to repay a loan taken to purchase a capital asset does not result in a revenue receipt. Further, the amount of Rs.29.17 lacs was not taxable u/s 41(1) as the same was not an expenditure incurred in the earlier years thus the cesation of liability is not taxable either under Section 41(1) or 28(iv) - in favour of assessee.