https://www.taxtmi.com/caselaws?id=424104 Remission of a liability is taxable under section 41(1) only where an earlier deduction or allowance was granted for a loss, expenditure, or trading liability. Waiver of loans used to acquire plant, machinery, or other capital assets is capital in nature and falls outside section 41(1); the BIFR rehabilitation scheme, binding under the special statute, was treated as effective for that purpose, so the related addition was deleted. For advances from customers and loans from others, the record did not conclusively establish their true character, so the matter required fresh verification of supporting documents and confirmations, with deletion directed if they were found to be capital in nature. en-us Wed, 15 Jun 2022 00:00:00 +0530 Wed, 22 Jun 2022 09:15:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424104 Remission of a liability is taxable under section 41(1) only where an earlier deduction or allowance was granted for a loss, expenditure, or trading liability. Waiver of loans used to acquire plant, machinery, or other capital assets is capital in nature and falls outside section 41(1); the BIFR rehabilitation scheme, binding under the special statute, was treated as effective for that purpose, so the related addition was deleted. For advances from customers and loans from others, the record did not conclusively establish their true character, so the matter required fresh verification of supporting documents and confirmations, with deletion directed if they were found to be capital in nature. Case-Laws Income Tax Wed, 15 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424104