Return treated as non est and ‘invalid’ cannot be treated as allowance or deduction – So Interest waived by bank cannot be charged to tax under s. 41(1)

NJP Surya Cold Storage Pvt Ltd. Vs ITO (ITAT Hyderabad)- Tribunal in the case of Rayala Corporation (P) Ltd. Vs. ACIT, ITAT, Chennai –B Bench (127 TTJ (Chennai) 369 wherein held that:- “Business income- profits chargeable to tax under s. 41(1)- waiver of interest by bank- returns for assessment years 1994- 95 to 1998-99 wherein the assessee had claimed deduction of interest were found defective by the AO and were declared to be non est as the assessee had failed to rectify the defect in spite of notices under s. 139(8) having been issued- authorities below concluded that the returns havin...