Notional Interest on Loans Not Taxable Without Statutory Provision; Section 41(1) Addition Deleted

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....The ITAT held that notional interest on loans and advances cannot be taxed in the absence of any statutory provision, reaffirming that only actual income is taxable. The addition of notional interest income was deleted, allowing the assessee's claim. Regarding the addition under section 41(1) read with section 28(iv), the Tribunal found no evidence of waiver or agreement for write-off of loan and interest by the creditor. The AO failed to verify conflicting account statements or pursue recovery actions before making the addition. Since the liability was recognized as a capital liability payable by the assessee and not a loss or expense, it could not be taxed under section 41(1). The Tribunal upheld the CIT(A)'s findings and dismissed the Revenue's appeal, thereby ruling in favor of the assessee.....