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2017 (3) TMI 324 - AT - Income TaxAddition on account of profit on pre-payment of deferred sales tax loan liability - claimed by the assessee as capital receipt - AO rejected the claim of assessee and made addition on the premise that waiver of sales tax liability tantamounts to cessation of liability and hence, taxable u/s. 41(1) - whether the difference between the actual sales tax liability and the liability discharged by the assessee in terms of scheme floated by the State Government is ‘capital receipt’ or ‘revenue receipt’? - Held that:- It is capital receipt and is not taxable u/s. 41(1) of the Act. See Sulzer India Ltd. Vs. Joint CIT [2014 (12) TMI 267 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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