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Write off of payable and tds implication

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Romit Shethwala (Querist)
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16 August 2013 X Co. has received money for business purpose from holding company and on certain sum, TDS was made and deposited with IT Dept. Subsequently X Co. turns into losses and lender, being holding company waives off the amount payable.
Now the question is - whether the amount waived off is to be treated as income u/s. 41(1)for X Co.?
Also, can X Co. claim TDS paid to the IT Dept as expenses? If yes under which section.
Kindly let me know relevant case laws in this regard.
Thanks in advance.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 August 2013 I am assuming the mentioned business purpose is trade payable (means for normal trade transactions, because it mentioned as tds also deducted)

Sec.41(1) says in case of any deduction or expenses claimed previously related to that particular liability and now you are not paying and written off the same. then that amount will be your chargeable income.

TDS deducted cannot treat as expenses, that can be claimed by holding company only even liability written off also

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