https://www.taxtmi.com/highlights?id=53743 Addition u/s 41(1) or u/s 28 - waiver of working capital loan - In respect of principal amount, though the assessee has gained the benefit by way of one time settlement the same cannot be brought to tax u/s 41(1) because the OCC loan represents the principal which was never claimed as expenditure. AO also did not make out a case that the principal amount was debited to the Profit & Loss account in the earlier years. Therefore there is no case for making addition u/s 41(1) in respect of the principal amount. en-us Thu, 18 Jun 2020 10:55:56 +0530 Thu, 18 Jun 2020 10:55:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=53743 Addition u/s 41(1) or u/s 28 - waiver of working capital loan - In respect of principal amount, though the assessee has gained the benefit by way of one time settlement the same cannot be brought to tax u/s 41(1) because the OCC loan represents the principal which was never claimed as expenditure. AO also did not make out a case that the principal amount was debited to the Profit & Loss account in the earlier years. Therefore there is no case for making addition u/s 41(1) in respect of the principal amount. Highlights Income Tax Thu, 18 Jun 2020 10:55:56 +0530 https://www.taxtmi.com/highlights?id=53743