TMI Blog2019 (7) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of the NPV of the same. That the State may have received a higher sum after the period of 12 years and in instalments. The statutory arrangement and vide section 38, 4th proviso does not amount to remission or cessation of the assessee's liability assuming the same to be a trading one. Rather that obtains a payment to the State prematurely and in terms of the correct value of the debt due to it. There is no evidence to show that there has been any remission or cessation of the liability by the State Government - Decided against revenue. - TCA.No. 117 of 2018 - - - Dated:- 1-7-2019 - Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr. T.R.Senthil Kumar, Sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case reported in 384 ITR 530(Mad). 3. We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the appellant/Revenue and Mr.R.Venkatanarayan, learned counsel for M/s. Subbaraya Aiyar Padmanabhan and Ms.Ramamani, learned counsel for the respondent/assessee. 4. The revenue preferred an appeal before the tribunal challenging the order passed by the Commissioner of Income Tax(Appeals)-15' (hereinafter referred to as CIT(A)) in ITA.No.544/CIT(A)-15/13-14 dated 25.02.2016 by which the CIT(A) deleted the addition of ₹ 2,20,63,819/- made by the Assessing Officer under Section 41(1) read with Section 28(iv) of the Act. 5. The assessee has availed deferral scheme for sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue was decided in favour of the revenue by the Hon'ble Supreme Court in CIT Vs. Thirumalaiswamy Naidu Sons reported in 230 ITR 534 (SC). The Tribunal after considering the case of the revenue, held in our view correctly that Thirumalaiswamy Naidu Sons (supra) was clearly distinguishable on facts and rightly followed the decision in Mcdowell Co Ltd (supra) . 8. We had an occasion to consider a similar issue in the case of CIT Vs. Wheels India Ltd, wherein identical issue came up for consideration noting that the tribunal in the said case, rightly took note of the decision of the Bombay High Court reported in [2014] 369 ITR 717 (Bombay), which was affirmed by the Hon'ble Supreme Court in C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is the assessee has subsequently obtained any amount in respect of such loss and expenditure or obtained a benefit in respect of such trading liability by way of a remission or cessation thereof. As rightly noted by the Tribunal, the Sales Tax collected by the assessee during the relevant year was treated by the State Government as loan liability payable after 12 years in 6 annual/equal instalments. Subsequently and pursuant to the amendment made to the 4th proviso to section 38 of the Bombay Sales Tax Act, 1959, the assessee accepted the offer of SICOM, the implementing agency of the State Government, paid certain amount to SICOM, which, according to the assessee, represented the NPV of the future sum as determined and prescribed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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