Prepayment of sales tax deferral loan on payment of net present value of future liability cannot be classified as remission

Prepayment of sales tax deferral loan on payment of net present value of future liability cannot be classified as remission or cessation of trading liability In brief :-In a recent ruling, in the case of Sulzer India Ltd. Vs. Jt. CIT [2010-TIOL-670-ITAT-MUM-SB] , the Special Bench of the Mumbai Income-tax Appellate Tribunal (the “Tribunal”) held that prepayment of deferred sales tax liability on the Net Present Value (“NPV”) of the future liability cannot be classified as remission or cessation of the trading liability, so as to attract the provisions of section 41(1)(a...