No Double Taxation on Liability Write-Back: Delhi ITAT Deletes Section 41(1) Addition and Notional Interest Demand

Continental Engines Pvt. Ltd. Vs DCIT (ITAT Delhi) No Double Taxation on Liability Write-Back: Delhi ITAT Deletes Section 41(1) Addition and Notional Interest Demand The Delhi ITAT dismissed the Revenue’s appeal and granted substantial relief to Continental Engines Pvt. Ltd., holding that liabilities already offered to tax in subsequent years cannot again be taxed under Section 41(1) and that notional interest cannot be added merely because interest-free loans were given to subsidiaries. The Assessing Officer had treated outstanding liabilities aggregating to ₹1.81 crore as ceased liabilit...