Loan waiver never claimed as expenditure cannot be taxed u/s 41(1)

PCIT Vs Gujarat State Financial Corporation (Gujarat High Court) Conclusion: Loan amount which was never claimed by assessee as expenditure, waiver of same could not amount to cessation of trading liability and was not chargeable to tax under section 41(1). Held:  AO held that waiver of loan amount would be considered as cessation of trading liability and such loan amount was income of assessee under section 41(1).  It was held that CIT(A) has agreed to the submissions of assessee that addition could not be made under Section 41(1). However, CIT(A) had considered that assessee was paying in...