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| The Tax Publishers2019 TaxPub(DT) 6099 (Mad-HC) : (2020) 427 ITR 0150 INCOME TAX ACT, 1961
Section 41(1)
While affirming the order passed by High Court of Bombay in Sulzer India Ltd. (2014) 369 ITR 717 (Bom) : 2015 TaxPub(DT) 0065 (Bom-HC)), Supreme Court in Balkrishna Industries Ltd. (2017) 88 Taxmann.com 273 (SC) : 2017 TaxPub(DT) 5467 (SC) held that approach of the High Court of Bombay was without any blemish, inasmuch as all the requirements of section 41(1) could not be fulfilled in the case on hand. Appeal filed by Revenue failed and the same was dismissed.
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Business income - Addition under section 41(1) - Remission of liability - Difference between sales-tax loan amount and amount paid on NPV basis under sales-tax deferral scheme
Issue arose under consideration as to whether Tribunal was right in holding that difference between the sales-tax loan amount and amount paid on Net present value basis under the sales-tax deferral scheme of Maharashtra Government was not a remission of liability under section 41(1). Held: While affirming the order passed by High Court of Bombay in Sulzer India Ltd. (2014) 369 ITR 717 (Bom) : 2015 TaxPub(DT) 0065 (Bom-HC) Supreme Court in Balkrishna Industries Ltd. (2017) 88 Taxmann.com 273 (SC) : 2017 TaxPub(DT) 5467 (SC) held that approach of the High Court of Bombay was without any blemish, inasmuch as all the requirements of section 41(1) could not be fulfilled in the case on hand. Appeal filed by Revenue failed and the same was dismissed.
REFERRED : CIT v. Balkrishna Industries Ltd. (2017) 88 Taxmann.com 273 (SC) : 2017 TaxPub(DT) 5467 (SC) CIT v. Ramaniyam Homes (P.) Ltd. (Formerly known as Rasi Silk Industries Limited) - (2016) 68 Taxman.com page 289 (Mad) : 2016 TaxPub(DT) 2061 (Mad-HC) CIT v. Sulzer India Limited (2014) 369 ITR 717 (Bom) : 2015 TaxPub(DT) 0065 (Bom-HC) Sulzer India Ltd. v. Joint CIT (2010) 138 ITD 137 (Mum) : 2010 TaxPub(DT) 2323 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. :
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