https://www.taxtmi.com/caselaws?id=751175 Calcutta HC held that Section 41(1) addition for bank interest waiver was incorrectly applied by ITAT. The court found that while the assessee had debited interest in profit and loss accounts in earlier years, the subsequent waiver of interest did not constitute remission or cessation of a trading liability. Following Supreme Court precedent in Mahindra And Mahindra, the court determined that loan waiver amounts to cessation of liability other than trading liability, making Section 41(1)(a) inapplicable. ITAT's order was set aside and CIT(A)'s order was affirmed in favor of the assessee. en-us Mon, 01 Apr 2024 00:00:00 +0530 Tue, 09 Apr 2024 08:25:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751175 Calcutta HC held that Section 41(1) addition for bank interest waiver was incorrectly applied by ITAT. The court found that while the assessee had debited interest in profit and loss accounts in earlier years, the subsequent waiver of interest did not constitute remission or cessation of a trading liability. Following Supreme Court precedent in Mahindra And Mahindra, the court determined that loan waiver amounts to cessation of liability other than trading liability, making Section 41(1)(a) inapplicable. ITAT's order was set aside and CIT(A)'s order was affirmed in favor of the assessee. Case-Laws Income Tax Mon, 01 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751175