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Section 41(1) not apples if loan waiver not amounts to cessation of trading liability
Case Law Details
- Case Name
- The Commissioner Vs Mahindra and Mahindra Ltd. (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
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CIT vs. Mahindra and Mahindra Ltd (Supreme High Court)
It was held that (a) Section 28(iv) of the IT Act does not apply on the present case since the receipts are in the nature of cash or money.
(b) Section 41(1) of the IT Act does not apply since waiver of loan does not amount to cessation of trading liability. It is a matter of record that the Respondent has not claimed any deduction under Section 36 (1) (iii) of the IT Act qua the payment of interest in any previous year.
FULL TEXT OF THE SUPREME COURT JUDGMENT / ORDER IS AS FOLLOWS:-
1) Leave granted.
2) These appeals have been filed aga...
