2014 (5) TMI 581

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..... Following DCIT Versus Colgate Palmolive India Ltd. [2012 (5) TMI 434 - ITAT, Mumbai] - payment of net present value of the future liability cannot be classified as remission or cessation of the liability so as to attract provisions of section 41(1)(a) of the Act - the differential amount representing the actual loan amount and the present value of the future liability paid by the company is on ca .....

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..... y of Rs.32,59,000/- under section 41(1) of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the differential amount of Rs.32,59,000/- representing the actual loan amount and the present value of the future liability paid by the assessee is on capital account and not taxable u/s 41(1) or any other provision of the Inc .....

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..... had held that payment of net present value of the future liability cannot be classified as remission or cessation of the liability so as to attract provisions of section 41(1)(a) of the Income Tax Act, 1961. 1.7 The assessee s case is squarely covered by the above referred decision of Special Bench of the Mumbai Tribunal and the facts of the above case are pari material to the appellant s case .....

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