Allowance or deduction not made as per IT Act, 1961 will not come under sweep of section 41(1)

RELEVANT PARAGRAPH 2.13 Now, as per admitted facts of this case and as also noted by this Tribunal in their earlier order, the returns where assessee claimed interest were treated as non est returns. Hence, assessee had relied upon Hon’ble Madras High Court in the Narayanan Chettiar Industries case cited above. In this case the Hon’ble High Court was of the opinion that in respect of remission of liability, no admission can be made unless an allowance or deduction is allowed to the assessee in the previous year. After noting these facts the Tribunal had noted that, from the records...