No addition under section 41 on waiver of loan by Government

Pr.CIT Vs SICOM Ltd (Bombay High Court) The issue under consideration is that whether addition under section 41(1) can be made in respect of waiver of loan by Maharashtra Government? As per section 41( 1), there should be an allowance or deduction claimed by the assessee in any assessment for any year in respect of loss, expenditure or trading liability incurred by the assessee. Then, subsequently, during any previous year, if the creditor remits or waives any such liability, then the assessee is liable to pay tax under Section 41 of the IT Act. The objective behind this Section is simple. It ...