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2018 (9) TMI 1631 - HC - Income TaxAddition u/s 41 - assess the benefit derived by the assessee in the form of allotment of shares, which represents deduction allowed towards the cost of production of film software during the earlier years - remission or cessation of liability occurred - Held that:- We fully agree with the decision taken by the Tribunal in confirming the order passed by the CIT (A). As rightly held by the Tribunal, for Section 41(1) to be attracted, there should be remission or cessation of liability of a third party, because the Section pre-supposes the transaction between two persons where an allowance of deduction has been made on account of loss, expenditure or trading liability and subsequently during any previous year, such person has obtained some benefit in respect of such trading liability by way of remission or cessation, etc. Thus, in the assessee's case, when the software library was capitalized, it cannot be said that any benefit or remission or cessation of liability occurred. - Decided against revenue
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