https://www.taxtmi.com/caselaws?id=235258 Interest waived by a bank could not be taxed as deemed income under Section 41(1) unless an allowance or deduction had actually been made in an earlier assessment in respect of the same liability. A mere claim in a return, or self-assessment payment under Section 140A, does not satisfy that statutory condition where the return is treated as non est under Section 139(9). The provision operates only when remission or cessation follows a prior assessed allowance or deduction, and that prior benefit must be identifiable from the assessment record itself. On that basis, the waiver was not taxable under Section 41(1). en-us Tue, 18 Jun 2013 00:00:00 +0530 Wed, 17 Jul 2013 09:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235258 Interest waived by a bank could not be taxed as deemed income under Section 41(1) unless an allowance or deduction had actually been made in an earlier assessment in respect of the same liability. A mere claim in a return, or self-assessment payment under Section 140A, does not satisfy that statutory condition where the return is treated as non est under Section 139(9). The provision operates only when remission or cessation follows a prior assessed allowance or deduction, and that prior benefit must be identifiable from the assessment record itself. On that basis, the waiver was not taxable under Section 41(1). Case-Laws Income Tax Tue, 18 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235258