https://www.taxtmi.com/caselaws?id=256055 The ITAT Mumbai allowed the appeal filed by the private Trust, overturning the decisions of lower authorities disallowing the deduction of discount on assigned liabilities under Section 37(1) of the Income Tax Act. The ITAT considered the discount as a proper charge on business income, citing legal precedents and the nature of the transaction where the liability was accepted at its present value. Emphasizing the liabilities were actual and not contingent, the ITAT ruled the discount as a deductible expenditure for business purposes, in line with Supreme Court decisions and consistency in previous assessments. en-us Fri, 09 Jan 2015 00:00:00 +0530 Tue, 03 Feb 2015 06:01:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=256055 The ITAT Mumbai allowed the appeal filed by the private Trust, overturning the decisions of lower authorities disallowing the deduction of discount on assigned liabilities under Section 37(1) of the Income Tax Act. The ITAT considered the discount as a proper charge on business income, citing legal precedents and the nature of the transaction where the liability was accepted at its present value. Emphasizing the liabilities were actual and not contingent, the ITAT ruled the discount as a deductible expenditure for business purposes, in line with Supreme Court decisions and consistency in previous assessments. Case-Laws Income Tax Fri, 09 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=256055