https://www.taxtmi.com/caselaws?id=339821 Under a statutory deferred sales tax scheme, premature discharge of the liability at net present value does not amount to remission or cessation of a trading liability. Section 41(1) applies only where the assessee obtains a real benefit from remission or cessation of an existing liability; a discounted prepayment merely settles the liability earlier on a fair valuation basis. The difference between the original future liability and the net present value paid was therefore not taxable as income under section 41(1), and was treated as a capital receipt. en-us Wed, 01 Feb 2017 00:00:00 +0530 Wed, 08 Mar 2017 06:58:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339821 Under a statutory deferred sales tax scheme, premature discharge of the liability at net present value does not amount to remission or cessation of a trading liability. Section 41(1) applies only where the assessee obtains a real benefit from remission or cessation of an existing liability; a discounted prepayment merely settles the liability earlier on a fair valuation basis. The difference between the original future liability and the net present value paid was therefore not taxable as income under section 41(1), and was treated as a capital receipt. Case-Laws Income Tax Wed, 01 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339821