TMI BlogAddition u/s 41(1) or u/s 28 - waiver of working capital loan - In respect of principal amount, though...Addition u/s 41(1) or u/s 28 - waiver of working capital loan - In respect of principal amount, though the assessee has gained the benefit by way of one time settlement the same cannot be brought to tax u/s 41(1) because the OCC loan represents the principal which was never claimed as expenditure. AO also did not make out a case that the principal amount was debited to the Profit & Loss account in the earlier years. Therefore there is no case for making addition u/s 41(1) in respect of the principal amount. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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