Section 41(1) not applies if amount was not claimed in earlier year

Pr. CIT Vs Gujarat State Co-Op. Bank Ltd.(Gujarat High Court) During the year under consideration, the assessee had returned back a sum of Rs. 10 crores towards the excess provision for liabilities. The Assessing Officer refused to accept such right back and added the said sum of Rs.10 crores to the income of the assessee. Assessee carried the matter in appeal. Commissioner of Income Tax (Appeals) confirmed the view of the Assessing Officer invoking the provision of section 41(1) of the Act. The assessee’s defense that the assessee had not claimed interest expenses in the earlier years a...