TMI Blog2000 (2) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax under section 41(1) or 28(iv) in spite of the fact that the purchases which were so remitted were claimed by the assessee as a revenue expenditure in the same assessment year ?" The application submitted by the Tribunal under section 256(1) was dismissed on the ground that the finding which has been given by the Tribunal is of fact as to the nature of the amount remitted by the Deutsche Bank and other considerations following mainly the judgment of the Supreme Court referred by the Tribunal. The facts of the case are that there was a waiver of Rs. 47.3 crores by the Deutsche Bank to the respondent-company. Out of this amount, the respondent-assessee offered only a sum of Rs. 2.60 crores as representing remission of interest amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of the assessee which was caused by the trading transactions of the assessee. He held that consequently the entire amount of Rs. 47.70 crores written off by the Deutsche Bank constitutes benefit by way of cessation of liability arising out of business transactions and the same was therefore assessable under section 41(1) read with section 28(iv) of the Act. The Tribunal held that the remission by Deutsche Bank is on capital account being waiver of overdraft dues and that the trading transactions of the Deutsche Bank with the assessee inter se and the transactions between the assessee and the third parties through Deutsche Bank stand distinctly on a separate footing. The Tribunal held that as such the remission by the Deutsche Bank is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1996] 217 ITR 866 (MP). Under section 41(1) of the Act, the liability would arise in respect of an allowance or deduction which has been made in the assessment for any year in respect of loss, expenditure or trading liability incurred by the assessee and subsequently during any previous year the assessee had obtained any amount in respect of such loss or expenditure or some benefit of such trading liability by way of remission or cessation thereof. The amounts credited to the profit and loss account were considered as income chargeable to tax under section 41(1) in the case of Indian Motor Transport Co. v. CIT [1978] 114 ITR 677 (All). It is not in dispute that the assessee has credited the profit and loss account and not the loan acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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