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| The Tax Publishers2020 TaxPub(DT) 1463 (Mad-HC) INCOME TAX ACT, 1961
Section 41(1)
Where issue was as regards treatment to benefit of deferred sales tax payment under Scheme announced by State and under Scheme made a premature payment at NPV (Net Present Value) of the deferred amount of sales tax collected, it was held that section 41(1) has no applicability in such circumstances.
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Business income - Profit chargeable to tax under section 41(1) - -
Issue was as regards treatment to benefit of deferred sales tax payment under Scheme announced by State of Maharashtra and under Scheme made a premature payment at NPV (Net Present Value) of the deferred amount of sales tax collected. Case of revenue was that AO allowed said benefit to assessee and did not invoke Section 41(1), treating the remaining part of the deferred sales tax as neither remission nor cessation of sales tax liability of assessee. Tribunal set aside order of CIT passed under Section 263. Held: Controversy is no longer res integra as Supreme Court, in “ CIT v. Balkrishna Industries Ltd” ., [(2017) 88 taxmann.com 273 (SC) : 2017 TaxPub(DT) 5467 (SC)] decided that section 41(1) does not apply in such circumstances. Following aforesaid decision Supreme Court, Coordinate Bench of Court also dismissed a similar appeal filed by the Revenue in CIT v. Wheels India Limited 2019 TaxPub(DT) 6099 (Mad-HC)] .
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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