Sec. 41(1)-Cessation of liability on capital account not taxable

Brief of the Case Delhi High Court held In the case of Principal CIT vs. M/s Tinna Finex Ltd. that the Tribunal has correctly followed the decision of this court in CIT v. Shivali Construction 355 ITR 218. The loan transactions were on the capital account and the writing off the loan was also on capital account and did not find place in the Profit and Loss Account.  Apart from this it has been found as a matter of fact that the assessee had not got the benefit of any allowance or deduction in the assessment for any prior year in respect of loss, expenditure or trading liability incurred by a...