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| The Tax Publishers2020 TaxPub(DT) 0891 (Bom-HC) INCOME TAX ACT, 1961
Section 41(1)
Tribunal in its order while deciding question regarding difference between deferred sales tax liability and its net present value had opined against the Revenue following the decision of this Court in case of CIT v. Sulzer India Ltd. [(2012) 138 ITD 0137 (Mum) : 2010 TaxPub(DT) 2323 (Mum-Trib)]. Thus no substantial question of law arises.
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Business income - Remission or cessation of liability - Difference between deferred sales tax liability and its net present value -
Issue arose for consideration as to whether Tribunal was justified in not holding that while amount of Rs. 32.55 Crores prepaid, as NPV was equivalent to the future liability of Rs. 107.08 Crores, difference of Rs. 74.53 Crores between the NPV and future liability being actual collections of sales tax, retained in the business by assessee in perpetuity, without having to pay the same to the State Government amounts to cessation/remission of liability under section 41(1). Held: Tribunal in its order while deciding question regarding difference between deferred sales tax liability and its Net present value had opined against Revenue following the decision of this Court in case of CIT v. Sulzer India Ltd. [(2012) 138 ITD 0137 (Mum) : 2010 TaxPub(DT) 2323 (Mum-Trib)]. Revenue had fairly brought to notice decision of the Supreme Court in case of CIT v. Balkrishna Industries Ltd .[ (2018) 300 CTR 0209 (SC) : 2017 TaxPub(DT) 5467 (SC)] to point out that question raised would stand covered against Revenue and no substantial question of law arises.
REFERRED : CIT v. Balkrishna Industries Ltd. (2018) 300 CTR 0209 (SC) : 2017 TaxPub(DT) 5467 (SC) CIT v. TV Sundaram Iyengar & Sons Limited (1996) 222 ITR 0344 (SC) : 1996 TaxPub(DT) 1245 (SC) and Sulzer India Ltd. v. JCIT (2012) 138 ITD 0137 (Mum) : 2010 TaxPub(DT) 2323 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. :
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