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2014 (5) TMI 581 - AT - Income TaxRemission/cessation of sales tax liability u/s 41(1) of the Act - Whether the differential amount represents the actual loan amount and the present value of the future liability paid by the assessee is on capital account and not taxable u/s 41(1) or any other provision of the Act – Held that:- Following DCIT Versus Colgate Palmolive India Ltd. [2012 (5) TMI 434 - ITAT, Mumbai] - payment of net present value of the future liability cannot be classified as remission or cessation of the liability so as to attract provisions of section 41(1)(a) of the Act - the differential amount representing the actual loan amount and the present value of the future liability paid by the company is on capital account and not taxable u/s 41(1) or any other provision of the Act – Revenue could not brought any contrary decision while challenging the order passed by the CIT(A) - thus, the order of the CIT(A) is upheld – Decided against Revenue.
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