https://www.taxtmi.com/caselaws?id=252955 Deferred sales tax treated as deemed paid under a sales tax deferral scheme, and later discharged at net present value, did not give rise to taxable income under Section 41(1) of the Income-tax Act, 1961. Section 41(1) applies only where an allowance or deduction has earlier been made and the assessee subsequently obtains a benefit by remission or cessation of a trading liability. On the stated facts, the deferred amount was not income from business, and premature payment under the later scheme merely extinguished the liability without creating a taxable remission or cessation. The amount was therefore not liable to tax. en-us Tue, 02 Sep 2014 00:00:00 +0530 Sat, 20 Sep 2025 12:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252955 Deferred sales tax treated as deemed paid under a sales tax deferral scheme, and later discharged at net present value, did not give rise to taxable income under Section 41(1) of the Income-tax Act, 1961. Section 41(1) applies only where an allowance or deduction has earlier been made and the assessee subsequently obtains a benefit by remission or cessation of a trading liability. On the stated facts, the deferred amount was not income from business, and premature payment under the later scheme merely extinguished the liability without creating a taxable remission or cessation. The amount was therefore not liable to tax. Case-Laws Income Tax Tue, 02 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252955